How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam, Accountant
Category: UK Tax
Satisfied Customers: 13816
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Type Your UK Tax Question Here...
Sam is online now
A new question is answered every 9 seconds

Do you have to pay capital gains tax if you sell part of a

Customer Question

Do you have to pay capital gains tax if you sell part of a property you have inherited ?
Submitted: 7 years ago.
Category: UK Tax
Expert:  Sam replied 7 years ago.

Hi Fairview


Thanks for your question.


Capital gains do need to be considered - as to whether any gain has been made from the sale price less the inherited value price. (So you need to establish the value of your share at the time you inherited it)


Costs to transfer the property into your name and fees to sell your share can also be deducted.


If what is left still shows a profit (gain), if it is less than £10,100 for this tax year, there will be no capital gains to pay.

If the amount is more than £10,100 - then any amount over and above this exempt limit with be liable to 18% tax.


A gain should be declared to HMRC the following 5 April after the sale has taken place - by completing a self assessment tax return to declare all income and a capital gain page completed for the gain made.


The tax must then be paid - the following 31 Jan

So if you made a gain on part share that was made Oct 2009

Declare this after 05/04/2010 on 2010 self assessment tax return

Tax must be paid no later than 31/01/2011


If you need any help with figures - then let me know

1) Date property inherited and your share of the value at that time

2) Costs to transfer property into your part name (your share of costs)

3) Whether you ever lived in this property since taking part ownership - if so provide dates (as some of the gain may be reduced by private residence relief)

4) Sale price and date sold

5) Costs to sell your part share







Customer: replied 7 years ago.


The part of the property that I sold was a strip of land to a neighbour for a garden which was sold for £50,000. sold approx 2 years ago


Date property inherited 04 2001


The value of the property at that time was around £750k the property was solely in my late husbands name but I assume half would of been mine


Lived in the property since new 15 yrs


Costs I cant exactly remember but around £2,000.


Dont know if it's relevent but the other executor would not sign for the property to put into my name unless he was paid £12,500 which he claimed the Estate owed him.



Expert:  Sam replied 7 years ago.



Thanks for your response


So can I clarify a few points


The property was in your late husbands name - and when he died who was the property left to ? If just you

How large was the piece of land sold

Was the land fenced off - or have any planning permission obtained by you prior to the sale


If the the property was left to you and other person/people


Is this still the case - that the property is owned with other people and if not when did this become your sole property

If so what share of the property is yours

Who lives in the property

Was the money from sale of the land split with other people














Edited by SamTax on 11/26/2009 at 1:56 PM EST
Customer: replied 7 years ago.

Yes just left to myself


No the land at the time was not fenced off nor did it have any planning permission


Roughly around 40' long by 20'

Expert:  Sam replied 7 years ago.

Hi Fairview


Thanks for your further response


As the land formed part of the enjoyment of the house - and is smaller than 0.50 hectares ( 53819.552 ft²)
- and that it was not separate from the house, or had any planning permssion on it, you have no capital gains to consider, as this sale is covered under private residence relief.


See link here for claification.

See Page 5 and Heading Garden or Grounds





Customer: replied 7 years ago.

Many thanks most helpful


one last question the inland revenue have asked for a Capital Gains computation to enable them to review any tax implications as they feel this is deemed chargeable, what is it ??

Expert:  Sam replied 7 years ago.



Thanks for your further response


They would want to see the sale price less

the inherited price

Less costs to transfer to your name

Less the costs to sell

Which would have to be done on a proportionate basis - as these figures would reflect the whole property and its land


However, along with this, I would write to them and advise that the land was less than 0.5 hectares - had previously been enjoyed as part of the garden - had no planning permission and had not been fenced off - so according to legislation - the sale of garden is not liable to capital gains as covered under private residence relief. And ask for their comments - and add a copy of the capital gains legislation that I gave you a link to-

And advise that you had every reason to believe that you were covered under this legislation.


You might want to engage an accountant to undertake this for you - but as a first port of call could address this matter yourself -







Sam and other UK Tax Specialists are ready to help you
Customer: replied 7 years ago.



Hi Sam,


I have another question for you please.


I have a registered limited company in Spain, and have transferred money from that companies bank account to mine in the UK. As drawings wages which ever it should be called.


As the money is earned in Spain and Spainish taxes paid would I be liable for any tax in this Country.





Expert:  Sam replied 7 years ago.
Hi Diane -

Thanks for your further question -as this is a new topic this needs to be listed as a new question - you can ask me for me to answer if that would be preferred


Customer: replied 7 years ago.



ok how do I ask for you ??

Expert:  Sam replied 7 years ago.
Hi Diane

Just post a new question starting Dear XXXXXTax - or For Sam Tax - then the other experts will know that you wish me to answer for you



Related UK Tax Questions