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  • Tax

    Part ownership and Capital Gains Tax

    Hello,

    I part own a property with two siblings, it's not in a limited company but simple shared between the three of us. We are considering selling the property and understand we can discount the profits by 3x the CPG tax allowance. However, I only own 1/4 of the property - surely I should only have to pay 1/4th of the CPG tax after the sale?

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    Hi MattBake

    The proceeds, costs and thus gain on the property is split between the owners in their set proportions and is entered as such on their tax returns.  After that they are each entitled to an annual exemption which is £11,300 till 5 April and £11,700 from 6 April per person.  The fact that you are getting less than one third is irrelevant as the exemption like the personal allowance is allocated against the individual.  So you will simply pay less tax that your siblings.

    Regards Nigel

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    Nigel Reynolds FCCA CMgr FCMI

    Property Tax Specialist

    Reynolds and Co

    http://www.reynoldsandco.co.uk