CGT on inherited property

melleathers

I am trying to work out what CGT is due on the sale of my late mother's house. I inherited a half share in 2004 when my father died and the remainder in April 2018 following the death of my mother. The house remained unoccupied and was immediately put on the market but was only sold in August 2019 at a reduced price to the initial estate agent valuation. Any advice would be most welcome. Thank you.

AdrianC

What was the probate value in 2004? Work out the gain from that to half of the sale price.
What was the probate value in 2018? Work out the gain from that to the other half of the sale price.
Add them together.
That's your total gain.

Mickey666

A related question (apologies if this should be a new thread but this one's title is relevant).

Someone inherits a property that has been previously rented out for a long time.  The beneficiary does not own their own house so decides to move into the inherited property whereupon it becomes their only property and their main residence..

What happens if/when they sell this property to buy another one?  Is there any CGT liability given that the property had previously been rented out, or does that liability die with the previous owner?

I'm guessing: a) the deceased's estate has no CGT liability because the property in question was never sold, only assented to the beneficiary and b) the beneficiary has no CGT liability on selling the inherited property because they have lived in it as their main residence and only property, therefore qualifying for PRR.

The above assumes any IHT arising from the deceased's estate has already been paid from other estate monies, or the estate was below IHT threshold so didn;t arise in the first place.

greatcrested

Mickey666 said:

A related question (apologies if this should be a new thread but this one's title is relevant).

Someone inherits a property that has been previously rented out for a long time.  The beneficiary does not own their own house so decides to move into the inherited property whereupon it becomes their only property and their main residence..

What happens if/when they sell this property to buy another one?  Is there any CGT liability given that the property had previously been rented out, or does that liability die with the previous owner?

I'm guessing: a) the deceased's estate has no CGT liability because the property in question was never sold, only assented to the beneficiary and b) the beneficiary has no CGT liability on selling the inherited property because they have lived in it as their main residence and only property, therefore qualifying for PRR.

The above assumes any IHT arising from the deceased's estate has already been paid from other estate monies, or the estate was below IHT threshold so didn;t arise in the first place.

Not relevant to the OP's query

greatcrested

AdrianC said:

What was the probate value in 2004? Work out the gain from that to half of the sale price.
What was the probate value in 2018? Work out the gain from that to the other half of the sale price.
Add them together.
That's your total gain.

Then take off your annual CGT allowance, unless you have already used that selling the Renoir, (£12,300 this year), and work out how much you'll owe based on 18% or 28% depending on your tax rate.