CGT on 2 different shares acquired on same property at different times

I inherited a 25% share of my parents house in 2014 when my mother died. I then inherited another 25% of the same house when my father died in 2022. The property has now sold this month (Mar 2024). The share acquired in 2014 has gained value but the share acquired in 2022 has made a loss ( based on IHT valuation 2022 vs actual sale price 2024). Two questions: I do not submit a tax return so how can I declare these two CGT events? Can the gain and loss be offset on the same form or declaration ( I have no interest or need to carry forward the loss for future offset). Many thanks for any advice.

Hi,

Please obtain the probate value of the property when you inherited 25% in 2014 and do the same for the 25% inhertied in 2022.

Take 25% of the probate value at both dates and add it together.  In this way you have worked out your 50% the value of the property you inherited.  

Work out 50% of the disposal value.  

Decuct the 50% inherited value from the 50% disposal value, to work out the gain.  

Next decuct 50% of the costs of disposal, such as solicitor or estate agent fees.  

Any positive figure remaining is a gain and after your annual exempt allowance is deducted, tax is then calculated.  

There is a calculator below  to help you work out your gain and from where you can report and pay any capital gains tax within 60 days of completion.

Tax when you sell your home

Thank you.

Thank you very much for that. So I have gone onto my personal tax account and set up a capital gains account. On there you can only put one date for when you acquired the property so I have put the latest date (dec 2022) and then added the 2 x 25% shares up and put that as the acquisition value as of dec 22 , even though 25% was acquired in dec 2014 and the other in dec 2022. Is this ok? It gives me the correct capital gains tax calculation either way, which is the main thing I guess? Many thanks!

Hi AdamS

Yes that would be correct.

Thank you

Thank you for your help! This is a brilliant service.