CGT on property with declaration of trust

Will I be charged CGT for my parents house, which I brought for them by remortgaging 52k and them having a discount from the council of 72k. I paid all costs and upkeep of property and insurance and charge no rent. We have a declaration of trust with them for the property and in their will it is written for the property to be passed to myself and my wife on the death of both parents? This was done in March 2017.

Hi,

It is possible that you will be subject to capital gains when you dispose of the property. Capital gains is the disposal value, minus buying and selling costs (including purchase price). As this is not your main residence, you will not be entitiled to private residence relief.  

General maintenance, such as, replacement boiler, roof, windows etc, are considered revenue expenses and cannot be set against any gains. 

CG15150P - Capital Gains manual: introduction and computation: computation: expenditure

Thank you.

When you say purchase price does that include the discount that was associated with the property on purchase? Also could you claim against CGT for the rent that was not taken since the purchase in 2017? Thanks for your assistance on this.

Hi,

No, income from property is taxable under Income Tax legislation, so cannot be set agains capital gains.

Thank you.