IHT questions.

YoungBlueEyes

Panic over. The solicitor filled them in !!!55357;!!!56898; Just rang and checked.

badmemory

Whilst I appreciate there may be IHT due if the value was high enough, but would there be CGT due as both owners were actually living in it?

Flugelhorn

YoungBlueEyes wrote: »

Panic over. The solicitor filled them in !!!55357;!!!56898; Just rang and checked.

Good ! Actually he wouldn't have been able to do probate without them. Surprised that you weren't involved as you have to give the values of things eg bank accounts / possessions etc

YoungBlueEyes

He said we gave him all that kind of info. I do vaguely remember a conv about house contents and values etc. I wasn't in particularly shape back then tbh, I sometimes think it's a wonder I got as much done as I have.
Thank god for our solicitor!

Keep_pedalling

badmemory wrote: »

Whilst I appreciate there may be IHT due if the value was high enough, but would there be CGT due as both owners were actually living in it?

No, as it is the OP and her sisters primary residence there is no GCT issue.

While it has worked out OK in this instance, it is seldom wise for a parent to transfer the home to their children. Apart from the future security and deprivation of assets concerned it can lumber the estate with a considerable tax issue because the the primary residence nil rate band is lost.

If the house in this case was worth £850k not £150k the the IHT bill would be £40-80k higher than it would have been if it had never been transferred.

YoungBlueEyes

Bit of a storm in a teacup there, but thanks everyone that replied anyway