Over 16 years ago my mother gifted me £40k from the sale of her home that I agreed to use towards buying a flat in my name for her to live in. There was a proviso to the gift that I was to give my brother £20k from the sale proceeds of the flat.
This agreement was reached as my brother was unwilling to finance half of the remaining purchase price of the property, but the £20k was his share of the potential inheritance that had been reduced by the £40k gift to me.
She has now passed away and the flat has been sold and I have given my brother £20k of the proceeds. Is that £20k deductible from the gain I have made for Capital Gains Tax purposes as the net proceeds I have received from the sale are £20k less than the actual gain?