Cgt?

[Little Sis]

I am buying a house from my brother in the next few weeks.

He purchased it last year for 240K and is selling to me at 270K. (current market value)Thus he is liable for 6K CGT, correct? Is thre anyway this cane be redcued to sibling/gift etc.

Also, he felt that his stamp duty payment and/or legal fees would/could be taken into consideration to reduce his CGT bill. I dont' belive so but await a more informed opinion.

Thanks

L S

 

[Vanilla]

If its not his PPR, then he will be liable to CGT on a straight sale to you. But he CAN take into account the stamp duty and legal fees on the purchase and legal fees on the sale. Also he can take into account any improvements he has made to it- if attached to the premises- ie he could take into account redoing the roof or a new kitchen but not redecorating or landscaping. Also he has a small gains exemption each year of 1270 which is also deductable- or twice that if he is married and the house is in the joint names of he and his wife.