inheritance

voyagerbear

If a daughter is the beneficiary of her mother's estate and receives less than £200,000.00 from the sale of the home, does the daughter have to pay any tax on receipt of the money.

fengirl_2

If the house was sold before the winding up of the estate, Inheritance Tax will have been paid by the executors before the £200k is given to the beneficiary, so no more tax to pay. If the house was transferred to the woman as part of her inheritance, again IHT will have been paid before transfer, but she would potentially be liable to CGT if she sold the property, never having lived in it.

John_Pierpoint

..............assuming it went UP in value from the date of death probate value to the date on which it was sold. If transferred into the daughter's own name and then sold the capital gain, could be partly taxed at a rate of zero if the daughter still has her annual nil rate CGT band available.

If it looks like having gone down and the daughter does not want to live in it and it has had to pay Inheritance Tax, it would probably make sense for the executor to sell the property and claim back some of the Inheritance Tax.

Best to talk with the executor because it partly depends on what the will says..