Propertry inheritance advice needed

coachmarty

Hi
My wife and I have inherited a house worth £160,000.

We are unsure on what best to do with this "asset"

We are working and paying 40% tax
We have our own home with a £40,000 mortgage remaining.

Should we:

Keep the house and rent it out

Sell the house to pay of our mortgage and save/invest the remaining money

Sell the house, pay off our own £40,000 mortgage and buy a smaller buy to let investment property with the remaining money.



Any other suggestions or advice will be most welcome.

Thanks
Marty

anselld

Sounds a bit of a Tax minefield!!
Rental income (less expenses) is taxable as income and on top of that any capital gain when you sell (less your allowance) is also taxable.
On top of all that it is not a good time to sell (sorry, stating the obvious!!)

Have you got children? I am not a Tax expert by any means but You might get away with giving them the property and renting it out in their names until such time as they need the capital.