Taxes to be paid on inheritance query

poe.tuesday

They never lived in the property and I am presuming that the value of the house was the value at the time of the will ?

Maybe inheritance tax has/ will be paid and its the capital gains that she is not going to tell the taxman about

I will try to find out some more from her but its a touchy subject

I just really want to protect her and ensure she is not doing something that will bite her

Thanks for all your help and if it is capital gains tax she has to pay, any ideas on how much?

uknick

poe.tuesday wrote: »

They never lived in the property and I am presuming that the value of the house was the value at the time of the will ?

Maybe inheritance tax has/ will be paid and its the capital gains that she is not going to tell the taxman about

I will try to find out some more from her but its a touchy subject

I just really want to protect her and ensure she is not doing something that will bite her

Thanks for all your help and if it is capital gains tax she has to pay, any ideas on how much?

I would be surprised if the IHT hadn't been dealt with as a solicitor was involved as executor. As you say CGT is probably the issue.

You might want to tell her HMRC have blitzes on non payment of CGT with regard to property sales. I assume they link to the land registry database of sales to see what hasn't been declared.

How much is due? To answer this a lot more detail will be required. Have a quick search in the Cutting Tax thread and you'll find many threads on the subject.

Savvy_Sue

poe.tuesday wrote: »

I will try to find out some more from her but its a touchy subject

and really, it's none of your business.

poe.tuesday wrote: »

I just really want to protect her and ensure she is not doing something that will bite her

That may be a kind thought, but as above. And some people just won't be told. p

Perhaps all you can do is say "I'm not sure it works like that" and "I'm certain HMRC check which properties have been sold and for how much and come asking for any tax they believe is due, even after a few years."

Also if she is using a solicitor for the sale, they will happily advise on this kind of thing.

jem16

poe.tuesday wrote: »

Thanks for all your help and if it is capital gains tax she has to pay, any ideas on how much?

It's not quite as simple as that.

Have a read through this.

http://www.hmrc.gov.uk/cgt/

In the end though you can't make your friend do the right thing.

getmore4less

This property will come under the nose of HMRC twice in 9 months first as a probate value and then as a £100k more sale they may take a look.

xylophone

http://www.garbutt-elliott.co.uk/blog/hmrc-launches-campaign-to-target-undisclosed-residential-property-sales.html

The OP's friend might find the above of interest.