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    • Ali71
    • By Ali71 12th Feb 18, 7:36 PM
    • 27Posts
    • 4Thanks
    Ali71
    CGT on inherited house
    • #1
    • 12th Feb 18, 7:36 PM
    CGT on inherited house 12th Feb 18 at 7:36 PM
    Hi,


    Briefly, my partner has just lost his only brother, suddenly and rather unexpectedly. We are trying to take things step by step, and are still waiting on the death certificate so early days. However, he has mentioned that he thinks he may have to pay CGT on the brothers house as it wont be his main residence. He lives with me but is not on the deeds, and does not own any interest in the house we live in; it is mine. At some point he will move the brothers house in to his name and either sell it or rent it out. But probably sell it. I don't see how he will have to pay 2nd property CGT on the sale as he will only own one property. Is there any other CGT liability please? Can anyone help please?


    Many thanks


    A
Page 1
    • Keep pedalling
    • By Keep pedalling 12th Feb 18, 7:43 PM
    • 4,549 Posts
    • 4,972 Thanks
    Keep pedalling
    • #2
    • 12th Feb 18, 7:43 PM
    • #2
    • 12th Feb 18, 7:43 PM
    There is no CGT ion nherited property. He may have a CGT liability if he sells at some point in the future if it!!!8217;s value increases and he does not take up residence in it though.
    • p00hsticks
    • By p00hsticks 13th Feb 18, 6:04 PM
    • 5,962 Posts
    • 6,060 Thanks
    p00hsticks
    • #3
    • 13th Feb 18, 6:04 PM
    • #3
    • 13th Feb 18, 6:04 PM
    The executor of the estate will need to get a valuation of the property as at the death for IHT/probate purposes. Any subsequent gain in value of the property from that point will potentially be liable for CGT if and when your brother comes to sell it.
    • 00ec25
    • By 00ec25 13th Feb 18, 7:08 PM
    • 5,977 Posts
    • 5,456 Thanks
    00ec25
    • #4
    • 13th Feb 18, 7:08 PM
    • #4
    • 13th Feb 18, 7:08 PM
    Hi,


    Briefly, my partner has just lost his only brother, suddenly and rather unexpectedly. We are trying to take things step by step, and are still waiting on the death certificate so early days. However, he has mentioned that he thinks he may have to pay CGT on the brothers house as it wont be his main residence. He lives with me but is not on the deeds, and does not own any interest in the house we live in; it is mine. At some point he will move the brothers house in to his name and either sell it or rent it out. But probably sell it. I don't see how he will have to pay 2nd property CGT on the sale as he will only own one property. Is there any other CGT liability please? Can anyone help please?


    Many thanks


    A
    Originally posted by Ali71
    so he was not a joint owner with brother?

    in fact he will only become an owner of the deceased brother's house once the inheritance goes through, assuming he is the sole beneficiary of brother's estate? Did brother make a will? If not are there any surviving siblings or parents or other blood relations?

    there is no such thing as "2nd property" CGT. if you own a property, but it is not your main home, then it is liable to CGT whether it is the only property you own, or the n th property you own. The liability is for the period you owned it but did not live in it.

    In the case of an inheritance, it depends who sells the property. If sold by the estate then he never owned it and there is no CGT.

    If the estate transfers it to his name and he then sells it at a later date, his CGT is based on the gain between the value at death (the "probate value" used in the estate tax calculations and declarations), and what it sells for, a figure that is unlikely to be large and probably unlikely to be more than his CGT free allowance anyway.
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