Do you have to pay any other taxes on a property after IHT is paid?

jerusalem2006

If a house is left to someone in a will and then inheritance tax is paid on that house because it is worth say £600,000. Do you;

a) have to pay any other taxes after you have paid IHT on the house if you then sell the house and
b) what happens if you sell the house for less than the valuation you have submitted for IHT purposes? Do you get a refund of the difference?
c) do you still have to pay capital gains tax if you sell the house that has been left to you even if you have already paid IHT on it?

lincroft1710

a) There may be Council Tax payable up until date of sale.
b) Contact Capital Taxes Office and ask them to review the case.
c) Sorry but can't help on this.

Elaine_Wilson

The person inheriting the house will be deemed to have acquired it at the probate valuation, which is the figure the IHT was calculated on.

If it is sold for less I believe the IHT can be adjusted. The probate value would now be deemed to be the lower figure.

Capital gains tax will be payable on any increase in value over the probate value subject to the normal reliefs (private residence, etc.).