My Mother recently sold a property along with 2 others and I was wondering what her CGT liability may be. Originally my Father's Ltd company bought a building plot and started to build a new house. Half way through the build the property was sold to my mother and father and my father's business partner and wife, therefore 4 owners with 25% ownership each. The property was completed with my Father standing most of the development costs. This was then rented out. My father died in 2010, my mother acquiring his quarter share with the rental continuing until the end of 2017. The property was sold in 2018 and now the CGT needs to be calculated for her 2018/9 tax return.
Can the costs of construction mostly paid for by my Father be offset against the sale of the house and would this be divided equally between the 3 surviving owners or just applicable to my mother's share? The costs are quite substantial relative to the sale price as the part built house required a lot of work and materials after the transfer/sale from the Ltd company. I do have all receipts and invoices as proof of this.
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