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Where Taxpayers and Advisers Meet

CGT on Property - deductible costs

lambertos
Posts: 1
Joined: Mon May 20, 2019 3:35 pm

CGT on Property - deductible costs

Postby lambertos » Mon May 20, 2019 3:38 pm

Over 16 years ago my mother gifted me £40k from the sale of her home that I agreed to use towards buying a flat in my name for her to live in. There was a proviso to the gift that I was to give my brother £20k from the sale proceeds of the flat. This agreement was reached as my brother was unwilling to finance half of the remaining purchase price of the property, but the £20k was his share of the potential inheritance that had been reduced by the £40k gift to me. She has now passed away and the flat has been sold and I have given my brother £20k of the proceeds. Is that £20k deductible from the gain I have made for Capital Gains Tax purposes as the net proceeds I have received from the sale are £20k less than the actual gain?

Jholm
Posts: 59
Joined: Mon Mar 11, 2019 4:22 pm

Re: CGT on Property - deductible costs

Postby Jholm » Mon May 20, 2019 5:23 pm

No, otherwise capital gains tax would be entirely redundant since people would create clauses saying the entire proceeds must go to x, y or z.


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