CGT on sale of joint-owned property

[dket]

My situation is as follows :

I joint-own a property with my brother - call this property A.

I bought a second property in May 2000 - call this property B.

Both property A & B have never been let out.

I moved out of property A in Nov 2001 and into property B which had remained empty since May 2000.

My brother remained in property A and I have not charged him any sort of rent.

I now wish to sell/transfer my half of property A to by brother - my gain is £125000.

I wish to know if I have to pay tax on this gain.

Additionally, will I have to pay any tax on the sale of property B if I sell within the next few months - I assume not as this has been my main residence since Nov 2001.

Thanks in advance.

[demetris]

the answers are straightforward to your questions.

on sale of your half share to your brother, there will be no capital gains tax as it was your prncipal private residence and the last 3 years of ownership are exempt anyway.

If you sell your current house, again there will be no CGT due for the same reasons as above.

Demetris Savva BA FCCA
http://www.tax-accounting-london.info
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