Would I pay capital gains tax?

[teaandcake32]

After my dad passed away myself and siblings were added to my mothers property to avoid paying inheritance tax. I own a quarter of the property.

My mother passed away and am in the process to sorting the estate. If myself and my siblings sold the property would we have to pay capital gains tax.

I own another property which I live in.

Many thanks.

Yes you would pay CGT on the increase in value from when you acquired it to when you sold it.
But you may not have avoided IHT as it sounds like a gift with reservation.

Thanks so much for replying. So I would only pay capital gains tax on the increase not the full amount of the property?

I have owned a quarter of the property for 20 years, would IHT still be applicable?

You need to go and get proper advice, from a tax adviser, not ask people on a random forum. I say this kindly, as an error could cost you a lot of money. No-one here can give you completely correct advice, however well-meaning they may be. Pay someone to go through your exact circumstances in detail and give you tailored advice, and peace of mind.

I know. Unfortunately my sister has decided she wants to deal with the estate and has employed a solicitor and any questions I ask are answered with curt responses that she knows what she doing as she worked as a PA for a solicitor for 10 plus years.

Not sure why a solicitor's PA thinks she has any tax knowledge! At least the estate is being handled by a professional.
Anyway, nothing to stop you seeing someone yourself. Hope you get it sorted.

Just to add that solicitors often work with tax advisers when dealing with estates, so you may find this side is also taken of.

I know. Unfortunately my sister has decided she wants to deal with the estate and has employed a solicitor and any questions I ask are answered with curt responses that she knows what she doing as she worked as a PA for a solicitor for 10 plus years.

Is she the executor?

CG tax is payable on a property you own but don’t live in, it’s a slightly complicated calculation.

there are different calculations for if you lived in the house from when you owned it and then moved out etc

how much is the house worth now? How much was the house worth 20 years ago?

Its worth about 500k now, not sure how much it was worth 20 years ago, probably about 350k. It was my childhood home so I moved out about 25 years ago.

Yes she is.