Brother, sister and an unconnected party jointly own a residential property 1/3 each.
The property is lived in by the sister and she has now bought out the other two so that she owns the whole property.
She paid each of the other parties £90,000. The property at that point was in fact valued at £275,000.
In so far as the unconnected party is concerned, her proceeds for CGT purposes would seem simply to be the £90,000 she actually received.
For the brother however, as he is connected, would one value his proceeds as being 1/3 of the market value, less say 10% for the fact that there was a joint ownership before the sale - therefore £275,000 x 1/3 = £91,667 x 90% = £82,500.
This is actually less than the £90,000 his sister paid him for the 1/3 share so would one use the actual proceeds?
Thank you for any thoughts