Inheritied half a house

Yorkshireman99

TheGardener wrote: »

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?

Thanks. There would have been no CGT on the estate value so I think they meant IHT. Any gain is the difference between your half of the probate value and the value of your half when you sell it. You need to decide on what values you are going to declare on your personal tax return. Just remember that you may have to prove the figures to HMR&C!

TheGardener

Aah right - ok. Yes IHT was not due. I am selling my half for 50% of the value used on the PA1 - no profit in that sense.

The property is in need of repair and all the usual indicators about local house prices actually point to a slight drop (around 3%) in value for the area. EA values appear to have remained static in the past 18mths. for properties on the same street.

So in my OP I asked if there was any specific reason we would need to enter into any sort of formal conveyancing or can my relative just pay me the agreed sum and we amend the registry to show their 100% ownership?

Yorkshireman99

TheGardener wrote: »

Aah right - ok. Yes IHT was not due. I am selling my half for 50% of the value used on the PA1 - no profit in that sense.

The property is in need of repair and all the usual indicators about local house prices actually point to a slight drop (around 3%) in value for the area. EA values appear to have remained static in the past 18mths. for properties on the same street.

So in my OP I asked if there was any specific reason we would need to enter into any sort of formal conveyancing or can my relative just pay me the agreed sum and we amend the registry to show their 100% ownership?

Noted. In view of the extra information I agree that there should be no CGT to pay. I see no reason why you should not just inform the LR on the appropriate form(s) and job done! As long as you declare the acquisition and disposal of the value on your tax return you should be OK. Personally I would include a letter with you return explaining the circumstances. Hopefully they will accept it.

getmore4less

The purchaser of your 1/2 will have to do a SDLT assessment.

The reason for what you describe as formal conveyance is to draw up contracts for what is changing hands and to meet any lenders conditions.

If happy to take the money and give up your beneficial interest no need for anything extra.