What tax will I pay

rincelex

I am not sure if posting this in the right place but just have a couple of questions regarding what tax I might be looking at paying.

About 17 years ago I was living with my grandparents and jointly we bought their house, I got married and moved out about 13 years ago but continued to pay the mortgage until it was paid and since then my grandfather has passed away and it is now just my grandmother living there. I have no income from the house and really the only involvement is that I pay £35 a month into a joint account we have to cover any work that needs doing on the house and the house insurance.

Eventually when I am sole owner I will be looking to sell the house and I understand that IHT limit is £325 which I will be well under and not sure if this applies as we three jointly owned the house and if one dies it passed to the remaining does this mean I inherited or not, my name is on the deeds.

What I am concerned about is Capital Gains Tax, as this is not my main home will I be paying tax on any profit from the sale of the house?

Thanks

chrismac1

You might well be as you will not have 100% Principal Private Residence relief. You had one-third share until your grandad died and your share now depends on his will. To work out the potential liability you'll need to post up the orignal cost, cost of any improvements and likely sale proceeds. And identify the date of death of your grandad and who he willed his share to. And the probate value, and probably other info. if I was not just off down the pub!

rincelex

Thanks for that our wills are worded such that in the event of the death of any of us then the surviving take over their share in equal parts until eventually only one remains and its down to them what they do with it.