Selling an Inherited House and Tax Liability - Can you Advise

AnnaWalker

My mother died a year ago and before she did she signed over her house to my sister and myself. She died before it was transferred into our names but this eventually came through a couple of months later. The value of the house at that time was included in her estate for tax purposes but we now want to sell it. Will we be liable for Capital Gains Tax? Surprisingly it has gone up in value some £40k. If anyone can help I would be very grateful.:T

G_M

You have paid Inheritance tax on the property by the sound of it.

Capital Gains Tax is entirely different. If you have lived in the property as your principal home during this period, then CGT is not payable.

If not, then it is. However there is an annual allowance. See direct.gov:

the annual exempt (tax-free) amount - this is £10,100 for every individual in 2009-10
So you'd have to pay tax on £20K ish at 18%

AnnaWalker

Thank you very much for this - Tax man always gets you!!!!:mad:

G_M

On the plus side, the tax man keeps me alive by funding my cancer treatment.

:T:T:T