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Inheritied half a house

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I inherited a 50% share in a property about 18months ago - the other 50% share holder is also a beneficiary and now wishes to buy my 50%. Do we have to do any legal conveyancing etc or does my relative just pay me and we amend the Land Registry?
We both have joint executorship and letters of administration
The total value of the estate including the property was below the threshold for tax
All probate and estate administration is concluded for everything else - this will be the final settlement.
Neither of us is in receipt of any state benefits
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Comments

  • Yorkshireman99
    Yorkshireman99 Posts: 5,470 Forumite
    I inherited a 50% share in a property about 18months ago - the other 50% share holder is also a beneficiary and now wishes to buy my 50%. Do we have to do any legal conveyancing etc or does my relative just pay me and we amend the Land Registry?
    We both have joint executorship and letters of administration
    The total value of the estate including the property was below the threshold for tax
    All probate and estate administration is concluded for everything else - this will be the final settlement.
    Neither of us is in receipt of any state benefits
    You may need to get a professional valuation by a RICS surveyor as you are likely to be liable for CGT. Did you get this done for probate?
  • TheGardener
    TheGardener Posts: 3,303 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    An estate agent gave us market value price of the house at the time we submitted the PA1 - even if the house price had shot up (which it hasn't) by over £50K it wouldn't have taken us into CGT territory.
    The PA1 values were not challenged in any way and the letters were issued.
    What is the threshold for CGT?
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    £11,300 on your share if not eligible for PRR.
  • TheGardener
    TheGardener Posts: 3,303 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 3 June 2017 at 12:13PM
    I used the CGT calculator on .gov and it says I don't owe any CGT ? I've double checked all the answers I gave and it says no CGT payable?
    Whats PRR?
  • Yorkshireman99
    Yorkshireman99 Posts: 5,470 Forumite
    An estate agent gave us market value price of the house at the time we submitted the PA1 - even if the house price had shot up (which it hasn't) by over £50K it wouldn't have taken us into CGT territory.
    The PA1 values were not challenged in any way and the letters were issued.
    What is the threshold for CGT?
    HMR&C will only query the valuation if the estate value is close to or over the IHT threshold. You would be wise to get some professional advice because estate agent'rs valuations are not acceptable to HMR&C.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    I used the CGT calculator on .gov and it says I don't owe any CGT ? I've double checked all the answers I gave and it says no CGT payable?
    Whats PRR?

    You need to do more cgt research if you don't know about private residence relief.
  • TheGardener
    TheGardener Posts: 3,303 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    We were happy with the value given and although we are happy to have to valued again if necessary (I am confident the value is right) - it doesn't change the fact that I don't appear - according to the .gov calculator - to owe any CGT - nor was I expecting to.

    I've checked and double checked the calculator but is says £0 . The value of the estate meant we only completed IHT205 - IHT 207 was not necessary and the estate value was not close enough to the lower limit to warrant any double checks.
  • TheGardener
    TheGardener Posts: 3,303 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You need to do more cgt research if you don't know about private residence relief.

    I am aware of residence relief - I just didn't recognise the acronym - This property was never my home so no.
  • Yorkshireman99
    Yorkshireman99 Posts: 5,470 Forumite
    We were happy with the value given and although we are happy to have to valued again if necessary (I am confident the value is right) - it doesn't change the fact that I don't appear - according to the .gov calculator - to owe any CGT - nor was I expecting to.

    I've checked and double checked the calculator but is says £0 . The value of the estate meant we only completed IHT205 - IHT 207 was not necessary and the estate value was not close enough to the lower limit to warrant any double checks.
    Please can you tell me the URL of the calculator you used? TIA
  • TheGardener
    TheGardener Posts: 3,303 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 3 June 2017 at 12:54PM
    Please can you tell me the URL of the calculator you used? TIA
    https://www.tax.service.gov.uk/calculate-your-capital-gains/resident/properties/

    I've tried it a number of times and I'm sure I've put in the right figures (my 50%)

    I spoke to HMRC when we were doing the probate and was told that the value of the estate was below the threshold for CGT - selling my 50% is not an additional gain is it?
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