Postby AGoodman » Thu May 25, 2017 4:59 pm
The key is in the words "My siblings ...and I bought a house".
If you genuinely bought it between you then the likelihood is that you are all the beneficial owners. The problem is that your brother has presumably told the bank, solicitors, buyers and (when he paid SDLT on purchase) HMRC that he is the sole beneficial owner.
If you are genuinely joint owners and can demonstrate that you have each contributed to the purchase price, mortgage and works (in equal or other clear method that you can demonstrate) then you should be able to treat the sale as a sale by all 5 of you. Tax looks through the person on the legal title to the underlying beneficial owner.
You would each make a gain of (share) * (the sale price - acquisition cost - professional fees - improvement works). Note that repairs are not deductible, only capital improvements.
Each of you can deduct your annual allowance from your share of the gain and, if there remains a net gain, will have to submit a tax return.