inherit, remortgage, inheritance, tax,

yorkshire07

I have a house with 100,000 mortgage and i have inherited a property which is worth the same value (this is free from inheritance tax). The question i would like to ask is , can i sell the inherited house and pay off the mortgage for my existing house without incurring any taxes, interest, etc. Thanks

lisyloo

Yes you can.
TYou will of course have to pay estate agents fees, solicitors fees and it would be a good idea to insurer the house.
and of course you have to keep it in good order (curt the grass etc.) whislt it's up for sale.

The only tas involved will be CGT (capital gains tax), but as house prices are not moving at the moment, I would suggest this is unlikely to be a problem as you are unlikely to make significant gains in the short term.

In this difficult market you could sell at auction.
You might only get 70% of the full value, but you'd get a quick sale, otherwise you may be waiting months/years to sell and having to insure etc. in the meantime.

kinglewis

I have a house with 100,000 mortgage and i have inherited a property which is worth the same value (this is free from inheritance tax). The question i would like to ask is , can i sell the inherited house and pay off the mortgage for my existing house without incurring any taxes, interest, etc. Thanks

As Lisyloo says the only tax payable would be Capital gains tax.. in which case you have to have made more than £10,100 profit (annual allowance) since when you attained the asset to when you sell.. before you pay tax at 18% (of the profit).

Current market.. not gonna happen! Enjoy!

opinions4u

This linky may help.

If you inherit and dispose of a second property

You can only have relief from Capital Gains Tax for one property at a time, so if you inherit a second property and live in it as a home, you should nominate one of your homes as your main home. You should do this within two years of making one of them your main home and let your Tax Office know.
If you don't nominate one of your homes as your main home and later sell or dispose of one of the properties, the decision as to which home was your main home will be made on the facts. You may have to pay Capital Gains Tax if the home deemed not to be your main home has increased in value.

The tax liability should be the difference between sale price and the property value at the date of death. Remember you have your £10,100 CGT allowance and, if I recall correctly, the costs of selling (e.g. estate agent, solicitors etc) to reduce any potential liability.

In the current market, if you find a buyer, I suspect you'll have no CGT to pay.