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  • FIRST POST
    • cooky44
    • By cooky44 18th Oct 16, 10:36 AM
    • 38Posts
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    cooky44
    Inheritance Tax on property in a will in 1978
    • #1
    • 18th Oct 16, 10:36 AM
    Inheritance Tax on property in a will in 1978 18th Oct 16 at 10:36 AM
    Hi
    This may be slightly long so i will apologise before I start.
    O inherited a property in 1978 from my mother - there was a will and I was named as heir to the house on the proviso that my Uncle could live there until his death. This was honoured and he died in 1986. I saw a solicitor and all was ok. I have the will and all the original documents of sale , etc.
    I decided the check the landregistry for the deeds, etc and I have found that they are not registered. I have contacted the Landregistry and they have advised that I will have to complete a FR1 , AS1.
    What I am wondering about was Inheritance tax from 1978 - The house was in need of repair and was probably only worth about £4000.00.
    I need to register and possibly transfer the property but I wondered would I have to pay any tax as we did not go to probate on this back in 1978.
    Thanks
Page 1
    • Keep pedalling
    • By Keep pedalling 18th Oct 16, 10:46 AM
    • 2,163 Posts
    • 2,291 Thanks
    Keep pedalling
    • #2
    • 18th Oct 16, 10:46 AM
    • #2
    • 18th Oct 16, 10:46 AM
    IHT if any would have been sorted out by her executor back in in the 70's, what you may face is capital gains tax when you sell the property.

    Have you been living there since your uncle dies, or has it been rented out.
    • cooky44
    • By cooky44 18th Oct 16, 10:49 AM
    • 38 Posts
    • 8 Thanks
    cooky44
    • #3
    • 18th Oct 16, 10:49 AM
    • #3
    • 18th Oct 16, 10:49 AM
    IHT was not paid as the property was only worth 4K and there was no other money, etc. My daughter lived there until 2003 but I have been renting it out since.
    Thanks for the info.
    Capital Gains - The property is only now worth approx £70K so I have left it to my daughter so if she sells when I am gone will she be liable for Capital Gains ./ Inheritance tax ?
    • Tuesday Tenor
    • By Tuesday Tenor 18th Oct 16, 11:21 AM
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    Tuesday Tenor
    • #4
    • 18th Oct 16, 11:21 AM
    • #4
    • 18th Oct 16, 11:21 AM
    IHT is only incurred if the total estate is worth more than £325,000.
    (And couples have an allowance of £325k each, so threshold can be higher when the second partner dies, if the first partner did not use all or part of their allowance). IHT is paid by the estate, not the beneficiaries. So it rather depends what other assets, apart from this house, you'll have on death.

    If your daughter inherits the house and doesn't use it as her main residence, when she eventually comes to sell it she will face Capital Gains Tax on any GAIN in value between the date of your death and date of sale. BUT she will also have a personal CGT allowance of something like £11k per year. So she would only have to pay anything if the property value had increased by more than £11k in the intervening period.
    Last edited by Tuesday Tenor; 18-10-2016 at 11:40 AM.
    • Tuesday Tenor
    • By Tuesday Tenor 18th Oct 16, 11:38 AM
    • 902 Posts
    • 1,204 Thanks
    Tuesday Tenor
    • #5
    • 18th Oct 16, 11:38 AM
    • #5
    • 18th Oct 16, 11:38 AM
    Hi
    I decided the check the landregistry for the deeds, etc and I have found that they are not registered. I have contacted the Landregistry and they have advised that I will have to complete a FR1 , AS1.
    ....
    I need to register and possibly transfer the property ...
    ......
    we did not go to probate on this back in 1978.
    Originally posted by cooky44
    I will leave it for the Land Registry and other more knowledgeable to advise.

    My understanding is that, unless you already jointly owned this property with your mother (so a transfer from joint to sole ownership) then probate on your mother's estate WOULD be needed to transfer the property into your name. And if not done now, then your daughter will need to do probate for your mother's estate, as well as your own, before she could sell the house.

    But as you have in the past consulted a solicitor, possibly my understanding is wrong, or I'm missing some vital information here, like the rules were different in 1978 ....,
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