Do I pay tax on a home I sell that is left in a Will?

hearts

If someone who is not a relative leaves me their home on their death and I sell it, do I pay tax on the sale?
This would be their only asset so no inheritance tax.
Thanks

nomunnofun

You would be liable to Capital Gains tax on the difference between the sale proceeds (after deducting costs of sale) and the value at time of death. Even then thsi difference would have to exceed £10900. Any gain above that would attract Capital Gains tax at 18% (if you are a basic rate taxpayer) or 28% (if higher rate). Could be a mixture of both rates.

holly_hobby

Yes, regardless as to if you are related or not, you will be subject to a CGT calc on disposal.

As explained above, this is based on the market value of the property at death and the sale price, less permitted reliefs, allowances and exemptions that each owner may be entitled to claim. Including primary residency relief for any period the property acts as the individuals own primary residence prior to disposal (subject to any HMRC stress test on validity).

The rates of applicable tax on any net gain are noted above.

Hope this helps

Holly

hearts

Thanks both very helpful replies.