Capital Gains /buying out parents etc

[messedaround]

Hi All
A friend asked me to ask this question , he wants to buy his parents house (they have 3) that was previously rented out , just got it valued at 440k , they bought it for 270k 3 years ago ,how much capital gains would they have to pay if they sold it privately and not to him , as he wants to make them an offer that saves them the hassle of putting it on the market and appeals to them ?? any advice much appreciated

 

[asdfg]

If they were to sell it privately CGT would be calc something along the lines

Selling Price ...............................................................440K
less selling Exps.Legal & Auctioneers (say).........................10
Total Selling ...............................................................430

Purchase Price .................................................270K
Plus Purchase expenses say Legal & Stamp Duty.......20K

Total .........................................................................290K

Liable to CGT...............................................................140K

CGT @ 20% .......................................28K

 

[Graham_07]

You need to be careful here in that where the parties are connected and the disposal is at other than "arms length" there may be a requirement to substitute marked value for the actual price paid in the calculation. The CG1 return required you to state if the disposal was between connected parties or otherwise not at arms length.