CGT on sale of half of private dwelling home?

M

Marple

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A colleague of mine is in the following situation & is wondering whether she is liable for CGT.
Her parents left her the family home where she lived with them all her life. They died 5/6 years ago. She is single & on disability benefit.
Her brother contested the will over a year ago regarding a half entitlement to share of house & to make a long story short, court found in his favour.
She hadn't the means to pay him off, didn't want to move out of the house so she sold half the house to someone else for 190K. The way the house was laid out (long house) it was possible to do this. She had to pay legals, Architect & estate agent fees.
She is now wondering does she have to pay CGT on the sale price & how is it calculated?
 
Should this question be moved to the tax section? I appreciate its a difficult one to answer. I have checked the Revenue website but can't get any answers.
 
I've moved it to the tax forum but I think that it's simply a tricky one to answer and might need somebody with tax expertise to address it. Thanks for not unnecessarily bumping the thread up after a very short period of time even though your question was still awaiting an answer. Did the individual's conveyancing solicitor give any opinion on the tax issue?
 
There really isn't adequate information here, but the following may help:

1. If she sold half the house, then there should be no CGT, as it is her principal private residence, and she has sold part of it. I am assuming that she sold, as stated, a subdivision of the house. Different considerations apply if what she sold had a development value.

2. As the court found in the brother's favour, it must have found that he was beneficially entitled to half of the house. In the circumstances, it seems far more likely that the sale of half of the house would have consititued a disposal by the brother. If the house was not his PPR, then this would indeed have triggered a CGT liability - but for the brother.

The solicitors who handled this should be able to advise; Some solicitors do not deal with CGT issues, but at a minimum they should be able to source proper advice.
 
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