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CGT when buying siblings share of inherited property

Mike O
Posted Wed, 21 Aug 2024 17:37:37 GMT by Mike O
Me and my two siblings inherited my parents house, one third share each. I am buying their two thirds share. The house was originally valued at £360000 about 18 months ago. We have agreed on a price of £405000 and I will pay them £135000 each (one third of £405000). Will I be liable for CGT as I am basically buying the property from them and not gaining any cash value?
Answer
HMRC Admin 18 Response
Posted Tue, 03 Sep 2024 09:35:46 GMT by HMRC Admin 18 Response
Hi Mike,

You need to pay Capital Gains Tax when you sell (or 'dispose of) an asset if your total taxable gains are above your annual Capital Gains Tax allowance. So as you are buying the property you

will not be liable for CGT. However your siblings might be. You can find out more information here:

Capital Gains Tax

Thank you.

 

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