CGT on partially gifted property
A bit of context.
In 2010 we bought out the equity release my parents had on their house meaning the property transferred to us at the cost of the equity release settlement.
The house value back then was around £140k but the house was gifted to us at the equity release cost..
We paid 60k to pay off the equity release and then own the house rather than letting it end up in the hands of the company and keeping it in the family.
So it is registered as sold for 60k on the land registry.
It was back then occupied by my grandmother in the main house and my parents in a self contained annex.
Our original intention was to move into the house at some point when anything happened to my gran.
My gran passed away in 2021 and 2 years later after renovating it and only having recently moved into our current new home also in 2021 we decided to rent out her side of the house while my parents continued to live in their self contained section.
Currently we have a tennant still in the main part of the house, but my dad passed away in February and my mum is now in hospital and probably going into full time care with dementia.
As we now don't really want to go live there now they're gone, we are looking at options to possibly sell the whole thing and stay in our current house.
My question is how will the CGT be calculated.
The house had a value of around 140k when we bought it for 60k and is worth around 200k now.
But as per the land registry we paid 60k for it as the remainder was gifted to us on the provisor that my parents would live there rent free until they pass (Dad) or have to leave (Mum going onto care)
So do we pay it on the difference between 60k and 200k.
Or between it's market value of 140k and 200k.
It has been a family home since the early 80s owned by my Gran and Grandad, Grandad passed away mid 80s and she then passed it on to mum and dad when they moved in to take care of her.
The whole CGT thing on our family house feels wrong but we just need to know which route to take.
Any advice is most welcome.
Thank you
Dean