I have lived overseas (Canada) for 27 yrs. In 1999 my mother gifted her home jointly to my brother and me. She has lived there rent free since then.

What tax implications are there for my brother and I when we sell the property? He still lives in UK and the property is approximately £100,000 pounds.  

James says:
Assuming the sale takes place after 5 April 2008, your brother will be liable to CGT at 18% on his half of the gain. Assuming you remain non UK resident, you will not be liable to UK CGT but you should check to see if you have any liability in Canada. Your Mother "reserved a benefit" when she gifted the property to you, so for inheritance tax purposes she is treated as still owning it until she moves out. Provided she survives the sale by seven years, the value of the property will not be included in her estate.  

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