Question on CGT for house inherited in 2011

I inherited a house back in 2011 from my grandfather. It was bottom of the market almost back then and the property was valued around 100K at the time. My grandfather had right of residence until he died last year. I was living there for a 3 years from 2012 to 2015 until I had to move up the country for work but was back every second weekend or so. I was renting where I worked, got married and had a baby in 2020 during COVID. We moved back home in 2021 but my granddad was mentally unwell (dementia) so we moved in with my wife's family and we are still living with them today. Its now 2023 and I am selling the house but the value is now 3x more than in 2011 and I am worried I am going to lose over 100K to CGT. We never bought anywhere else so it was/is my only residence that I have owned if that matters? Will we really lose 33%?

You are not losing 100k, you have gained 200k

CGT calc is: (300,000 - 100,000) * 33% * (9/12) -1,270 = 48,230

this assumes it was your principle private residence for 3 of the 12 years (and that I haven't made a mistake).

Was the value of 100k before or after the deduction for right of residence?

McGaggs said:

CGT calc is: (300,000 - 100,000) * 33% * (9/12) -1,270 = 48,230

this assumes it was your principle private residence for 3 of the 12 years (and that I haven't made a mistake).

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It's a lot more complicated than that as it involves a life interest.

Given the sums involved, the OP needs proper professional advice rather than rely on uninformed speculation here.

A life interest and a right of residence are not the same

Poormans said:

I inherited a house back in 2011 from my grandfather.

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I guess you mean he gifted it to you and retained a life interest.

Did you pay stamp duty on the transfer at the time based on a professional valuation ?

The OP said "right of residence"

Thanks all for the advice. He gifted it to me and I paid all the expenses at the time (stamp duty etc). As part of the transfer was included the right of residence/ to remain until his death. Right of residence was the term used I believe, I'm not familiar with the life interest term.

@jpd, what is the deduction for right of residence? I'm not familiar with that either.

I'll definitely talk to an accountant about this, just wanted to get a idea of the situation

Poormans said:

I'll definitely talk to an accountant about this, just wanted to get a idea of the situation

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You'll need all the details from your capital acquisitions tax calculations at the time of the inheritance, so maybe start with the accountant you used then.

Hopefully the correct valuation was used at the time of the gift