Gift of a House

royP_2

At present I rent a small house and recently a friend has died and left me her semi detached house in her will, will i have any capital gains tax to pay.

I intend to live in the house and it is worth approx £250k

Thanks

[Deleted User]

royP wrote: »

At present I rent a small house and recently a friend has died and left me her semi detached house in her will, will i have any capital gains tax to pay.

I intend to live in the house and it is worth approx £250k

Thanks

You pay CGT when disposing of an asset on which you have made a capital gain. You're not disposing of this asset so there will be no CGT liability.

theartfullodger

Depending on what else her estate was worth there may be IHT (inheritance tax) to be paid on it. If this was pretty much her only asset you'll be fine.

CGT is (currently - rules change..) only paid on properties you are not living in. So, e.g., if you started renting it out & it's value goes up there may be CGT to be paid.

HOW were you left it - e.g. in a will held by a solicitor or she mentioned it once in the pub...? No offence but these things can be challenged. Who is the executor of the estate - they will be in charge until probate granted.



Lucky you!

royP_2

Thanks for quick replies,Left in her will, waiting for probate to be granted.

G_M

No. Capital Gaind Tax is not paid on assets at a death.


There may be Inheritance Tax to pay, but you will not pay it - her Estate will pay before you inherit. So it would be paid (if necessary) from other assets in the Estate (eg any savings, investments which she may have had etc).


If there are no such assets, then since the property is only worth £250K it is below the threshold for Ineritance tax.