Question:
Our mother lived in her house until her death 15 months ago. My brother and I are the beneficiaries. I have moved into my mother’s house and my brother is thinking of renting part (30 per cent) of the house out as he will not be there, and because he is entitled to do so. I, however, will receive no rent as I’ll be residing there and I’m happy with this. I have decided to live in the house for the next four or five years, but when the time comes to sell, will I have to pay CGT?
Answer:
If the house was always your mother’s residence, the only CGT that could apply would be on any increase in value from the date of her death.
If you use the house as your principle residence until you sell it, there will be no CGT on your share.