Capital Gains on a Second Property

[Whattherapy2020]

Can anyone help please?

MIL transferred her house to me and DH in 2012, although she continued to live there until her death in 2020.. So this counts as our second property. She has since died and we rented out the house earlier this year. If we were to sell the property how would we work out the Capital Gains Tax on the sale? The title documents does not indicate a price, so I am not sure how I/Solicitor would work it out? Is there some kind of formula used?

We were thinking about selling it, and so need to know the CGT or are trying to work out whether we should sell our house - our primary residence - and move into that one, thereby getting rid of the CGT issue. Although Im not sure how long we need to be in the house for CGT to no longer apply.

Can anyone help please?

I'm no tax expert and have never inherited anything, but I believe what you need is a RICS surveyor's red book historical valuation to see what the value was in 2012 when it became yours. Google that for clearer info. You'll pay capital gains on all of the increase from that moment on, for all the months that it is not your principal primary residence. There is no amount of time you can live in it that will negate the need to pay capital gains on all these years when it has not been your PPR. If you sell your home and move in, you'll start to get months that will count towards a percentage of the whole period of ownership which will not be subject to capital gains, but it's not a move you can make to wipe it out completely. Only move in there if it is where you want to live.

Thank you so much for your advice. I will look into the RCIS Guide for further information.
I really appreciate your advice.

Any one else able to give any advice?