liable for CGT??

catford

My elderly mother has anounced that when she dies she would like her house to be sold and the proceeds to be shared between us four children.
I dont imagine that it will be a lot of money,but how do we stand in respect of the taxman??What amount will he take?
Any advice welcome!;)

Tiggs_2

when she dies any capital gain dies with her, inheritance tax takes over.

so...she dies, house is sold and (assuming it doesnt rocket in value between her death and the sale) there is 0 gain.

it is then split into 4 and given to the kids.

if its under £285k then no IHT is due so no tax anywhere...if its over £285k then the surplus is taxed at 40% and the kids get whats left (should add....its the TOTAL esate so the house may not be worth much but if she has a £5million painting she is leaving to her milkman there could still be a big IHT bill! )

catford

Thanks -last time I looked she had two lowry prints, so the milkie can have both!! Its not very nice when your mum tells you stuff like that,but at least she's still playing with a full deck,and I think she's put it down on paper.

Tiggs_2

its good she is chatting about it, talking doesnt bring it forward!

out of interest - how has she sorted this out? re-written her will? who is the executor? you may want to get involved on that front and see if she is appointing a solicitor to act when shes gone or you (or a sibling)

catford

I believe that she has made a will and I think my sister is executor--which is great because she's good at legal stuff,and usually well organised.
At the moment mum looks like outliving me-she never slows down. Good for her.

Tiggs_2

sounds fine..sis as executor is good - will save on legal fees!