Implications of owning part of a second house

oldchap_2

My brother & myself have each been left one sixth of my deceased mothers house where she lived together with my unmarried sister. The remaining two thirds is left to my sister who now lives there alone.
We dont expect to gain any benefit from this one sixth until my sister dies and the property is sold which could be 40years away.
Apart from increasing the value of my estate, are there any tax implications of owning this part of a house? (we own & live in our own house, so we would effectively own one and one sixth houses)
Thanks

00ec25

Income tax

as your sister is not paying you any rent then there is no liability re income tax

Capital gains tax

You are liable for CGT on your 1/6th share

This will be payable ONLY when the house is SOLD. It will be the difference between the probate value (the "cost" price) used when you, brother and sister inherited it and the price it sells for (x 1/6th in your case obviously)

If in 40 years time the rules are still the same then you are allowed to deducted a fixed amount (personal allowance) from the total gain (this is £10,600 at 2011/12 rates). The net figure is then the gain on which you will pay tax.

Clealry you wil only pay tax if the house has increased in value,and you can afford to pay the tax becuase you will have the cash from the sale to do so

CGT rates are currently 18% and 28% - who knows about the future...

Council tax

as long as your sister lives there it is her, and her only , who is laible for the council tax