Tax Inheritance

Marlin1894

My mother signed her house over to myself and my brother in 1992 but lived in it until she died in March of this year. We haven't done anything with the house and it is standing empty. I don't know what it was worth when she passed it on to us and at a guess it may be worth £50K at the most. If we sell the house then how do we work out the tax liability?

00ec25

1, You get valuation done for it at its 1992 market value - you use that in your Capital gains tax computation. You will probably find it much easier to employ a suitably qualified professional valuer experienced in retrospective valuations, that likely excludes a high street estate agent, and steers you towards paying a chartered (valuation) surveyor

2. Separately you calculate the estate valuation and its (unlikely by what you say) exposure to inheritance tax as at the date of death, since it was a gift with reservation of benefit and so never left her estate for inheritance tax purposes. You may or may not need a professional valuer for that too.


Meantime we the taxpayers thank you for voluntarily exposing yourself to the "double tax whammy" of CGT and IHT that your mother could easily have avoided by never giving it to you in the first place

Marlin1894

Thanks for that. I seem to be genetically disposed to good fortune and taxes