Is there CGT due on a property purchased for my mother?
Question I purchased a house in 1984 for the sole purpose of my mother to live there rent free. I paid the mortgage and all maintenance bills, my mother paid the utility bills. My mother has now passed away and I intend to sell the house. Am I liable for capital gains tax?
A property owned on 5 April 1988 that has been continuously occupied rent free by a dependant relative since that date is exempt from capital gains tax (CGT) when disposed of, by virtue of Taxation of Chargeable Gains Act (TCGA) 1992 section 226. A dependant relative includes a mother who has no husband, and also usually includes a mother over 65.
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