Capital gains tax on gifted equity in property

[joshe90]

Anyone able to help with this one. I own a property jointly with my brother. It was purchased in 3 names (along with my uncle) in 2009 but in 2016 my uncle gifted his share of the property (33.33%) to myself and my brother equally. Having now sold the property is the capital gain on the difference in purchase price from 2009 to now or does the transfer of equity have any bearing on the capital gain?

Original purchased price in 2009 of £132,750
Sale price in 2021 of £195,000

[anonymous-user]

Your gain:

1/3 of the increase from 2009 to 2021
Plus
1/6 of the increase from 2016 to 2021.

You can think of it as 1/3 09-16 plus 1/2 16-21 and it comes to the same thing.

[joshe90]

That makes sense, so would I use the valuation figure from 2016 as obviously there wasn't an actual 'sale' price only a remortgage.

[Welshbeef]

BlackWidow13 said:

Your gain:

1/3 of the increase from 2009 to 2021
Plus
1/6 of the increase from 2016 to 2021.

You can think of it as 1/3 09-16 plus 1/2 16-21 and it comes to the same thing.

Um 7 year gifting rule applies here - it needed to be valued on the date of the gifting.

First 3years it’s 40%
Then it drops in the % down to 0% by year 7 - but unless uncle dies then even after the property is sold the cash /asset then nada to pay.

Now the actual gain from gift to sale clearly that is then liable to CGT

[anonymous-user]

Welshbeef said:

Um 7 year gifting rule applies here - it needed to be valued on the date of the gifting.

First 3years it’s 40%
Then it drops in the % down to 0% by year 7 - but unless uncle dies then even after the property is sold the cash /asset then nada to pay.

Now the actual gain from gift to sale clearly that is then liable to CGT

Read the first post again.

The OP is asking how his changing share in an asset affect his CGT liability.

He isn’t asking about potential IHT on his uncle’s estate.