CGT due?

[cliff99]

Some 18 years ago my sister and I purchased a property for the use of our parents. They have lived in the property rent free until very recently when one has died, and the other has gone into a care home. We are now about to sell the property.
During our 18 years of ownership the property has obviously increased in value and CGT will be due. As the property has never been let how will the CGT be calculated.

[maths]

Each of you calculate your own capital gain = 50% x sale price (assuming market value) - 50% x original cost - annual exempt amount (Esch of you get this amount. £12,300).

50% of purchase cost added to original cost and 50% of sale costs deducted from sales price.

[Snowking7]

It could be worth your while taking professional advice on whether or not the arrangements you had constituted a constructive trust arrangement, such that principal private residence relief will be available to mitigate the potential CGT.

[bd6759]

A constructive trust would not change anything, and might have unwanted repercussions with regards to care home fees.

[maths]

I suspect Snowking7 is referring to the possibility that TCGA 1992 s 225 may be in point. I suspect not, but there are insufficient facts in the post to make any definitive determination.