Another CGT question

longforgotten

My Dad passed away several years ago. Any savings Mum+Dad had were in joint names but they had little money. They had a house that they bought together but the deeds have always been in Mums name only.

When Dad died the will left everything to Mum. I want Mum to live forever but failing that Mums 'worth' may well be between £300,000 to £400,000 because of the value of the house.

I want things to be as straight forward as possible. So will the unused allowance be carried forward to Mum? Any future CGT ? Would I have to prove Dad had very little money ?

Thanks in advance for your advice

agrinnall

CGT is not payable on a main residence so I don't think there's anything for you or your mum to worry about. Inheritance Tax may be something to think about if your mum's net worth is more than the threshold (currently £325K) but it's not an area I know a lot about so hopefully others will offer more advice,

CLAPTON

if you father left everything to your mum then your mother's estate would benefit from an IHT limit of 650,000

cgt is irrrelevant

no you don't have to proof anything about your father's estate except that everything was left to your mother

longforgotten

Gosh, that's lovely news. I have a copy of the will so can prove Dad left everything to Mum.

Peace of mind for me.

Thanks for the advice

getmore4less

With a £650k IHT limit not much chance of a tax bill based on current assets.

Is the house appropriate for a long life?

don't underestimate care issues.

Would she benifit from more cash,

maybe a downsize and a bit of spending

fromjenny

getmore4less wrote: »

With a £650k IHT limit not much chance of a tax bill based on current assets.

Is the house appropriate for a long life?

don't underestimate care issues.

Would she benifit from more cash,

maybe a downsize and a bit of spending

Can someone clarify this 650,000 limit for me? I thought the threshold for IHT was about 325,000 whereby everything above that is taxed at 40%. What limit is being referred to here (re the 650K)??

noh

fromjenny wrote: »

Can someone clarify this 650,000 limit for me? I thought the threshold for IHT was about 325,000 whereby everything above that is taxed at 40%. What limit is being referred to here (re the 650K)??

The unused portion of a late spouses IHT allowance can be transferred. So potentially there is a 2 x £325000 threshold available.
See:- http://www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold.htm

John_Pierpoint

longforgotten wrote: »

Gosh, that's lovely news. I have a copy of the will so can prove Dad left everything to Mum.

Peace of mind for me.

Thanks for the advice

I think you will find that HMRC will want the will and grant of probate -
official embossed copies from the probate office - not something you could have faked up on your PC. The charge from the probate office is about £10 when the time comes.

longforgotten

Getmore4less........yes downsizing would be a good idea but Mum won't move. Has lived there all her adult life and won't budge.

As for having more money, as long as Mum has a cuppa and Sky sports she's a happy bunny !

p.s. I have a copy of the will , while Mum has the original.