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My mum's house
wends01
Posts: 36 Forumite
Hi,Not sure whether I am in the right place or not but wonder if someone can help/point me in the riight direction.4 years ago, my mum transfered her house over to my sister and me,the deeds are now in both our names.We currently each have a mortgage on our own houses as well.In July my mum passed away,the estate as such was sorted without going through probate as her savings were under the threshold and the house in our names. The house is currently up for sale,we have had an offer which we have accepted so when/if the sale goes through are we liable for any form of tax - thanks
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Comments
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I believe that if you are gifted something over the tax-free threshold then the inheritance tax liability remains for 7 years, decreasing at a rate of 1/7 per year.
So if the house was was gifted 4 years ago, I believe you would have inheritance tax liability on 3/7 of the value of the property. I don't know whether that would be based on the value of the house 4 years ago or now.
Best to check with a solicitor/accountant to be certain but that is my understanding of the rules around gifting and inheritance tax.0 -
It's still liable to inhertiance tax as she died within 7 seven years (which she did) but only if her estate is over £325k as that is the current allowance. Also if you sell the house you are likely going to have to pay Capital gains tax on each share (you and your sister) if your share (each) has gone up in value over £10200. Anything over that you will have to pay 18% that's 'if' you are liable for CGT? Anyone else confirm???
Tax man is a b45t4rd!0 -
Hi thanks for that, the house was valued at £95,000 when it was xfered to us and we have accepted an offer of £95,000 on it!! - that is pure chance, so does that mean we won't be liable for capitla gains tax?0
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No gain = No capital gains tax, AFAIK....
With a house value of £95k, doesn't sound as though the estate is over the IHT threshold either, unless your mum had some VERY expensive jewellery ....0 -
hi, no my mum's estate was well under that threshold, we didn't need to go to probate, and no there is no VERY expensive jewellery either, thanks again0
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