Capital Gains Tax

Splopjam

We have just sold my late parents' home for £295,000 a year after my mother's death. The probate valuation was £250-270,000 a year ago.
We've been told we have to pay capital gains tax, but surely the valuation was just the estate agents opinion and not fact - if they'd valued it at £300,000 we wouldn't have had to pay it!
Also, as I moved in to look after my mother, I stayed in the property for a year after her death, until it was sold. I have heard that because it was my sole home and I was paying all the bills, I should have some exemption from the capital gains tax.
I don't understand all this, it's complicated and confusing - can anyone advise?

Your_Hero

Splopjam wrote: »

We have just sold my late parents' home for £295,000 a year after my mother's death. The probate valuation was £250-270,000 a year ago.
We've been told we have to pay capital gains tax, but surely the valuation was just the estate agents opinion and not fact - if they'd valued it at £300,000 we wouldn't have had to pay it!
Also, as I moved in to look after my mother, I stayed in the property for a year after her death, until it was sold. I have heard that because it was my sole home and I was paying all the bills, I should have some exemption from the capital gains tax.
I don't understand all this, it's complicated and confusing - can anyone advise?

http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm#1

If it was your sole residence after your mother's death then you may be eligible for private residence relief (PRR), see above link.

zygurat789

Splopjam wrote: »

We have just sold my late parents' home for £295,000 a year after my mother's death. The probate valuation was £250-270,000 a year ago.
We've been told we have to pay capital gains tax, but surely the valuation was just the estate agents opinion and not fact - if they'd valued it at £300,000 we wouldn't have had to pay it!
Also, as I moved in to look after my mother, I stayed in the property for a year after her death, until it was sold. I have heard that because it was my sole home and I was paying all the bills, I should have some exemption from the capital gains tax.
I don't understand all this, it's complicated and confusing - can anyone advise?

To whom was the house left in the will.
Exactly how much was the probate value.
Did you have any other property when you moved into and lived in your mother's house.

It may be an estate agents opinion but if HMRC do not agree with it they can refer to the District Valuer and overturn any previous valuation.

Savvy_Sue

And who are 'we'? ie was the house left to you, or to you and siblings / partners / offspring / Uncle Tom Cobley and all.

You alone would be able to benefit from PRR, others who did not live in the house would not. But if there's more than one of you who have inherited the house, then the gain is shared between all of you, thus reducing your individual liabilities to CGT.