Tax : Property being left to me; Any advice please

Flan_the_Man

Hi

My aunt passed away last year and I believe her property, worth around £140k, (and in need of renovation) has been left to me and my wife.

The whole estate is less than £275k, therefore :

1. Will we be subject to any taxes in respect of my aunts estate when the probate is finalised?

2. If we decide to keep the property and renovate and possibly rent out - would we be charged a penalty as such for doing this?

Thank you for any help you can offer

RayWolfe

If the total estate is below the Inheritance Tax threshold (£280,000?) then there will be no tax to pay.
If you let out your property and make a profit on that there will be income tax to pay on that profit.

jennifernil

If the value of the entire estate was under the IHT threshold when she died then there will be nothing to pay.
If you rent out the property you will have to pay income tax on the income but you can set various costs against this. If you sell it later you will probably have to pay Capital Gains Tax on any profit you make.