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Where Taxpayers and Advisers Meet

Selling family home

Sloanie79
Posts:2
Joined:Tue Mar 06, 2018 11:49 pm
Selling family home

Postby Sloanie79 » Wed Mar 07, 2018 11:35 am

I'm looking for advice on CGT. My parents bought the family home around 1990 and my mum lived there until she separated from my dad around 2004. My mum has rented a flat from a housing association since and my dad remained at the family home until he passed away in 2012. My parents never divorced and the house passed to mum. My mum has continued to rent from the association ever since and my brother has been living in the family home since 2012. The mortgage is paid off and my mum would now like to sell the house to my brother. In terms of CGT, is this just a case of claiming tax relief for the years she lived there (1990-2004) and claiming letting relief for the years my brother has been there (2012-present)?
Thanks in advance

SteLacca
Posts:448
Joined:Fri Aug 07, 2015 2:17 pm

Re: Selling family home

Postby SteLacca » Wed Mar 07, 2018 4:21 pm

There's no apportionment of lettings relief. It's the lower of:

Private residence relief claimed
£40,000
The gain after other reliefs.

Don't forget that private residence relief applies for the period lived there, plus the last 18 months.

Sloanie79
Posts:2
Joined:Tue Mar 06, 2018 11:49 pm

Re: Selling family home

Postby Sloanie79 » Wed Mar 07, 2018 4:32 pm

Thanks, does the same apply if my brother has been paying rent to my mum during the time he lived there?

wamstax
Posts:2019
Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen
Contact:

Re: Selling family home

Postby wamstax » Wed Mar 07, 2018 5:10 pm

The crux of letting relief is that the property was rented out for the period that it was occupied by that other person. So if the property was not rented out to anybody no lettings relief can be due.
regards and hope this helps
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