A friend of mine bought his parents house in 1989 for £45,000 and they continued to live in it rent free until his Mum moved into sheltered accommodation a few weeks ago, (his dad died some time ago, but I dont know when). His mum has been suffering from Alzheimer's for the past few years.
The house is now empty and he is going to sell it for probably around £170,000.
Is his gain free of tax as the house was lived in by dependent relatives and no income was received.
If not, how are the various reliefs calculated, ( I think I can do the current taper relief, but am not sure what went before.
Many Thanks