Capital Gains Tax

[Ursula]

My mother died in 1999 leaving her 90% share of her property to my sister and I (tenants in common). Her partner, who has 10% share, continued to live in the property until this month. We now wish to sell the cottage and wondered if we were liable for any capital gains tax. The property is worth approx £170000.

[pawncob]

Yes you are liable to CGT on 90% of the gain from the probate valuation to the sale proceeds. (Subject to annual exemptions etc being available) The 10% owner can claim PPR relief, so no CGT.

[pawncob]

Yes you are liable to CGT on 90% of the gain from the probate valuation to the sale proceeds. (Subject to annual exemptions etc being available and taper relief) The 10% owner can claim PPR relief, so no CGT.