Capital gains tax query

[Fretfulparent]

Could anyone give advice on this situation.
A house is bought as tenants in common between A & B. B lives in the house.
B dies and leaves their share in the house between A and C. The house is valued at death at 600K by a surveyor and this value is used for IHT.
A then offers to buy out C who says the house is now worth 650K.

So C wants 175k from A ie 25k more.

Does C have to pay any capital gains on the extra 25k they have received?

Will this disadvantage A when they eventually sell the house? How will their CGT be worked out having owned different percentages at different times.

Thank you

Where does the £175k come from?
I'm guessing the shares weren't originally equal or left equally?
(ie A has original 50% + 1/2 share of B's 50% = 75%).
Or are they suggesting the £50k increase is split equally? But the shares equal now? In which case why isn't it £325k?

Anyway, not really relevant to the question you've asked.

A's cost:
Share (at whatever %) of original purchase price.
+
Share (at whatever %) of A's share of the £600k probate value.
+
Cost (£175k in your example) of the remaining share purchased from C.

No longer any indexation so dates don't really matter for the cost computation.

C will have a capital gain on the proceeds they receive less the probate value of the share they received.

Many thanks for replying.

To clarify A &B owned 50% each. B leaves their half of the property to be divided equally between A and C.
A wants to offer C 150 to buy out their share but C feels the market value has increased and is asking for 175.

( There are other investments left to C so overall they are not disadvantaged financially)

Would C still have to pay CGT if their name was never on the land registry for the property? However the property share out, is referenced in the executors estate accounts.
No solicitor involved so far.

Ok, so 75% and 25% - but C wants 50% of the increase.
That's clearly not right is it - their share is 25%, so they get the original 25% of £600k plus 25% of the £50k increase (not 50%). So £162,500 total.

Land registry is obviously an indicator of ownership - but it isn't absolute. C absolutely has an interest in 25% of the property and therefore will be liable to CGT.
Albeit this should only be on their 25% share of the £50k gain - £12,500. And assuming no other gains in the year pretty much covered by their annual exemption.

I am very grateful that you've replied again.
It's a complex situation however your figures make sense.
Many thanks again