jools

jools818181

My father passed away 15 years ago, and just recently my mother has passed on too. My brother and I have gone through her papers and found that 15 years ago, she put my brother and I on the deeds. We just want to know what kind of tax will we need to pay, would it be gifted tax or any capital gains tax. The property was only ours from the year 2000, we had been told lots of different things, but was wondering if anyone had experienced this and which tax category would it come under, ineritance, capital gains, gifted etc., We have been told that we will only have to pay capital gains tax from the date it was ours and how much it had gone up in value since then. Thank you

McKneff

Do you both own other houses in your own right
How much is your mthers house worth and has she left her portion of
the house to you both.

CLAPTON

jools818181 wrote: »

My father passed away 15 years ago, and just recently my mother has passed on too. My brother and I have gone through her papers and found that 15 years ago, she put my brother and I on the deeds. We just want to know what kind of tax will we need to pay, would it be gifted tax or any capital gains tax. The property was only ours from the year 2000, we had been told lots of different things, but was wondering if anyone had experienced this and which tax category would it come under, ineritance, capital gains, gifted etc., We have been told that we will only have to pay capital gains tax from the date it was ours and how much it had gone up in value since then. Thank you

how much is your mother's estate worth?
did your father leave everything to your mother?
whose names were on the title deeds since 2000?
who has lived in the house since 2000?
what was the approximate value of the house in 2000?
what is the value of the house now?

mgdavid

did either your father or mother write a will?

jools818181

Estate is worth £250,000
Everything was left to my mum when my dad passed away.
My parents names were on the title deeds before they were transferred over into our names.
My mum was living on her own in the house until she passed away this year.
The house has increased by 100,000 since 2000.
My parents did not write a will
We both have our own homes that we live in.
My brother has his own home and a house in rents out.

Hope this is of some help. Any advice appreciated. Thank you.

Savvy_Sue

OK, by the sound of it your mother's estate is below the limit for inheritance tax.

Capital Gains Tax will be due when you sell the house. How much is a slightly complicated sum which can't currently be answered as you haven't yet answered the question "who has lived in the house since 2000?"

Whether or not you intend to sell the house quickly, you need to establish two values:

a) when the was transferred into your names (there are online sites which will help you do this, or a valuer would be able to advise on historic values) - this will be needed for CGT purposes when you sell

AND b) a value at the date of your Mum's death - for IHT purposes, even though you believe the estate will be below the threshold.

saintalan

Savvy_Sue wrote: »

...you haven't yet answered the question "who has lived in the house since 2000?" ...

From jools818181
"My mum was living on her own in the house until she passed away this year."

Savvy_Sue

saintalan wrote: »

From jools818181
"My mum was living on her own in the house until she passed away this year."

Sorry if I'm being picky or stoopid, it just wasn't entirely clear to me that that covered the entire 15 year period from Dad's death. I see now it probably did, but wanted to rule out the possibility that either of both of the beneficiaries had lived in it with mum for any period.

jools818181

So will I need to pay two different types of tax when it is sold and will the tax be the same for both of us, because my brother is self employed

xylophone

two different types of tax

You have stated that the value of your late mother's estate is below the IHT threshold so you (and your brother) are only looking at CGT.

You each have a CGT allowance - see https://www.gov.uk/capital-gains-tax/overview

You/the executor still need to complete the necessary forms in order to obtain Probate.

https://www.gov.uk/wills-probate-inheritance/applying-for-a-grant-of-representation

CLAPTON

jools818181 wrote: »

Estate is worth £250,000
Everything was left to my mum when my dad passed away.
My parents names were on the title deeds before they were transferred over into our names.
My mum was living on her own in the house until she passed away this year.
The house has increased by 100,000 since 2000.
My parents did not write a will
We both have our own homes that we live in.
My brother has his own home and a house in rents out.

Hope this is of some help. Any advice appreciated. Thank you.

when you say that your mother's estate is 250,000 I assume you are NOT including the value of the house.

What is the current value of the house?