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  • FIRST POST
    • loulou41
    • By loulou41 3rd Sep 17, 5:32 PM
    • 2,628Posts
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    loulou41
    Capital gains on inherited property
    • #1
    • 3rd Sep 17, 5:32 PM
    Capital gains on inherited property 3rd Sep 17 at 5:32 PM
    My elderly parents will leave my brothers and I their house after their death worth about £400,000 which I believe they bought very cheap years ago about £100,000 but it was a lot of money at that time. Will we be liable for capital gains when we sell as we both have our own property. Thanks
Page 1
    • Keep pedalling
    • By Keep pedalling 3rd Sep 17, 5:45 PM
    • 3,954 Posts
    • 4,313 Thanks
    Keep pedalling
    • #2
    • 3rd Sep 17, 5:45 PM
    • #2
    • 3rd Sep 17, 5:45 PM
    Assuming that the property would be sold then no CGT dies not apply. The same applies if they sell before they die, it's their primary residence so is exempt.
    • xylophone
    • By xylophone 3rd Sep 17, 6:02 PM
    • 23,480 Posts
    • 13,652 Thanks
    xylophone
    • #3
    • 3rd Sep 17, 6:02 PM
    • #3
    • 3rd Sep 17, 6:02 PM
    https://www.gov.uk/tax-property-money-shares-you-inherit/property

    You don’t pay Stamp Duty, Income Tax or Capital Gains Tax on a property you inherit when you inherit it.

    You may have to pay Inheritance Tax if the deceased’s estate can’t or doesn’t pay it.

    HM Revenue and Customs (HMRC) will contact you if you need to pay.

    The rules are different in Scotland.

    Selling the property

    You don’t pay Capital Gains Tax when you sell your home. You do pay it if you make a profit when you sell a property that isn’t your main home.

    If inheriting a property means you own 2 homes, you’ll have to nominate one of them as your main home. You must tell HMRC which property is your main home within 2 years of inheriting the property.


    https://www.theguardian.com/money/2015/sep/03/how-can-we-reduce-the-capital-gains-tax-on-an-inherited-house
    • Chelle97
    • By Chelle97 9th Sep 17, 5:01 PM
    • 2 Posts
    • 0 Thanks
    Chelle97
    • #4
    • 9th Sep 17, 5:01 PM
    • #4
    • 9th Sep 17, 5:01 PM
    Hi. I've no idea how to start a new thread!? Bit I have issues with an inherited building too but situation is slightly different.
    My aunt died, leaving me the house I've been living in for over 20 years. It's a big house that needs some work doing to it and will be costly. If I sell this, would I have to pay capital gains tax? She's been gone for 2 years next month. I've searched the net to find answers, but it seems to all relate to inherited properties that you don't reside in. My house was valued 2 years ago at £300,00. A recent valuation has come in as £330,000. How much capital gains would that be? I'm the sole owner, but I don't work as I was made disabled 4 years ago.
    Sorry to jump onto the thread! Many thanks
    • Keep pedalling
    • By Keep pedalling 9th Sep 17, 5:57 PM
    • 3,954 Posts
    • 4,313 Thanks
    Keep pedalling
    • #5
    • 9th Sep 17, 5:57 PM
    • #5
    • 9th Sep 17, 5:57 PM
    To start a new thread, you just hit the new thread button on the main page of the forum you want to start it in.

    To answer your questing, the house has been your primary residence since you inherited it, it is therefore exempt from CGT.
    • Chelle97
    • By Chelle97 9th Sep 17, 6:08 PM
    • 2 Posts
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    Chelle97
    • #6
    • 9th Sep 17, 6:08 PM
    • #6
    • 9th Sep 17, 6:08 PM
    I was concerned as it was only in my name, the day she died, as stated in her will, 2 years ago. I was told I'd have to pay CG on anything over the probate price
    • xylophone
    • By xylophone 9th Sep 17, 7:44 PM
    • 23,480 Posts
    • 13,652 Thanks
    xylophone
    • #7
    • 9th Sep 17, 7:44 PM
    • #7
    • 9th Sep 17, 7:44 PM
    You have lived in this house (but did not own it) for the past twenty years and have owned it for the last two since you inherited it from your aunt.

    It is your principal private residence. See

    https://www.gov.uk/tax-sell-home
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