My 3 siblings and I own our family home as tenants in common. My younger brother is buying out the 3 of us. My elder brother has lived abroad for years and my solicitor informs me that the funds will not be released until he has tax clearance as he is a non resident. After some Googling I think she means Capital Gains Tax clearance and I wonder how my elder brother can go about obtaining this.
Does this mean that the CGT (if any) must be paid before a person receives payment and this seems unfair to me as a person would have to pay tax on money they have yet to receive and may not have the funds available. Anyway, there will be no capital gain on the transfer in this case as the house has gone down in value since we acquired it about 20 years ago (we have a valuation at that date).
What steps do we need to take to get tax clearance.
Any advice would be appreciated!
Does this mean that the CGT (if any) must be paid before a person receives payment and this seems unfair to me as a person would have to pay tax on money they have yet to receive and may not have the funds available. Anyway, there will be no capital gain on the transfer in this case as the house has gone down in value since we acquired it about 20 years ago (we have a valuation at that date).
What steps do we need to take to get tax clearance.
Any advice would be appreciated!