My father bought a house in 1972 and passed away in 2003, leaving the property to myself and my brother. My kids moved into this property and live there rent-free. Three years later I bought my brother out, with my kids still living in the property rent free. The whole time I have lived in my own house with my wife, and only ever lived in the inherited property growing up as a teenager. If I were to sell this property, would there be any capital gains tax? If so, can this be minimised?
There will be capital gains tax payable by you when you sell the property. The calculation of how much capital gain has been made will be complicated due to your ownership of the property being made up of two different parts.