Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 07 Aug 2024 11:17:33 GMT by richard30
Hi, I bought a family house with my mother and brother in 1995, as joint tenancy with right of survivorship. I lived in the house until I was married in 1999, my mother continued to live there until her death in 2014 and my brother has also lived there until he passed away at the end of July. I am trying to get a handle on what tax might be due if I was to sell the property and also, as the property is in a state of disrepair, what my options might regarding carrying out the necessary works to bring the property up to the required standard for sale. Kind Regards, 

Name removed admin .
Posted Tue, 13 Aug 2024 10:28:29 GMT by HMRC Admin 21 Response
Hi richard30,
If and when you sell the residential property,  you may find the HMRC Capital Gains Tax On Property calculator helpful when calculating the gain:
Tax when you sell property.
You can  deduct the costs of improvement work (for example an extension) when calculating Capital Gains on residential property, but general upkeep and repair costs are not allowable.
Thank you.
Posted Tue, 13 Aug 2024 10:49:17 GMT by richard30
Thank you. Having read the documentation can I just confirm that I only need to calculate the gain based on my share (i.e. one third of the property's value when acquired and when sold), as the only remaining tenant ? Kind Regards.
Posted Fri, 23 Aug 2024 07:35:36 GMT by HMRC Admin 25 Response
Hi richard30,
Yes, you only declare your share.
Thank you. 
Posted Sun, 25 Aug 2024 15:36:52 GMT by hpurchase
Hi Thinking of owning a rental property with my mother. Me 10%, my mother 90%. However, we wish all of the rent to be paid to myself. My mother has a income of approx £20,000 per annum. I understand that when we come to sell the property, any gain will be subject to capital gains tax. Based on the each owners % share. Therefore, if the profit on selling was £30,000. I would receive £3,000 and my mother the remaining £27,000. Therefore, when my mother calculates her tax obligation for capital gains, she will take her income (lets assume still £20,000) and add on her £27,000 profit from the house sale, less the present £3,000 exemption, if still available. As my mother will have received no rent from the properties, her income means she is still a basic rate taxpayer and accordingly will only pay capital gains at the basic tax payer rate of 18% on the house profit. However, if my mother had received the rental income in the proportion share of ownership (ie 90%) she would be a higher rate tax payer and hence pay the higher rate of capital gains tax which is 24%. Could I therefore please ask for confirmation: On selling the property, will my mother's CAPITAL GAIN TAX Calculation be based on her actual income received that tax year, which does not include any rental income OR On selling the property, will my mother's CAPITAL GAIN TAX Calculation be based on a scenario that , had she received the rent as per her 90% actual holding in the property, this would have made her a higher rate tax payer, and hence she will need to pay the higher rate of Capital Gains Tax of 24% on her share of the sale proceeds. So basically, I am asking, does HMRC take into account the possible rental income that my mother could have received, had she so wished, (even though it will always be NIL) when HMRC are working out whether Capital Gains should be paid by my mother as a basic or higher rate tax payers.
Posted Thu, 05 Sep 2024 14:25:47 GMT by HMRC Admin 33
Hi,
Unfortunately we are unable to provide specific advice tailored to individual circumstances on this forum. You are able to contact HMRC regarding Capital Gains Tax here: 
Capital Gains Tax
Alternatively you may wish to engage the services of a professional advisor/accountant to assist with your enquiry. 
Thank you.

You must be signed in to post in this forum.