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capital gains tax?
kimlizzy
Posts: 9 Forumite
My brother & myself inherited our mothers house. My brother lives in wales and would like me to buy him out. We(my husband & I) live in my husbands house not far from my mothers property. We are in the process of selling the property we live in so we can pay my brother for the half of mom's house & then we will own/live in the property. When our property is sold, we will change the house into my husbands & my name.
Would we have to pay any capital gains tax?
The probate is complete, just the house to sort out.
Any information will be greatly recieved.
Would we have to pay any capital gains tax?
The probate is complete, just the house to sort out.
Any information will be greatly recieved.
0
Comments
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If there is no increase in the value between that at the date of your mother's death and the date you buy his share then no. If there's been a small increase in the value of the property then you have in the current year a Capital Gains allowance of £11,000 before you are liable for tax. Don't forget that £11,000 would represent the increase in your half of the property so £22,000 overall.0
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The home that we are selling to raise the money to pay off my brother would not be liable for capital gains tax, would it?0
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Do we have to show any of the inheritance on our tax forms as my brother & myself are self employed?0
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Do we have to show any of the inheritance on our tax forms as my brother & myself are self employed?
You don't have to show the capital. You would need to show half of any income after the date of death (so interest on bank accounts) as that would be treated as yours for tax purposes and you need to show that income and any tax deducted from it on your tax return, just as you do with your own accounts.
The bank should provide details from the date of death to the date the account is closed so that you can do this.
ETA: and the Capital Gain if there is one, but that has been explained above.:heartpuls Daughter born January 2012 :heartpuls Son born February 2014 :heartpuls
Slimming World ~ trying to get back on the wagon...0
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