I want to enquire about Capital Gains Tax for a relative. The situation is that this person and his brother have inherited a house from their mother who died last year. The house has been sold for £140,000 to another family member and his wife, initially valued at £185,000. Things were slow moving until the other relative showed interest. The brothers coming into the money are both pensioners and so on a modest income. I see that Capital gains Tax has two rates, 18 and 28 per cent, and that there is an annual exempt amount of £10,600 currently. does this mean that £10,600 of each brother's inherited amount from the sale does not have CGT charged on it? I'm not used to dwelling on money issues at all except banal day-to-day stuff so I'm not the right person to be guessing. Is the gist basically that both brothers will have to pay 18 % of their £70,000 share?
The relative who's asked me to enquire wants to know this as they
intend to give some of the money to offspring and obviously want to
settle the CGT before they start giving it away.
Thanks for any clarifications and advice. I'm not asking about
loopholes or fiddles. If there is any legitimate knowledge we could
benefit from that would be appreciated. No one involved is at all
wealthy and with the tax being money for nothing for the government
from a relatively modest property all paid for with decades of honest
toil information from impartial knowledgeable people would be
- posted 7 years ago