Tax Query

BobPetcher

I have sold my Father’s house which I inherited last September. Can anyone tell me if I am liable for any tax from the proceeds?

theartfullodger

Yes, someone bwho can see ALL the figures and dates could.

BobPetcher

I don’t want to give figures here but completion was on 2nd June.  I just need to know the rules about this please.

Falafels

BobPetcher said:

I don’t want to give figures here but completion was on 2nd June.  I just need to know the rules about this please.

From Money Advice Service.org, which may answer your question:

Do I have to pay tax on my inheritance?

If you’re an heir, there’s not normally any tax to pay before you receive your inheritance.

The exception is if you received a gift at some point in the seven years before the person died.

Depending on the value of the gift and when it was given, you might have to pay some tax.

Find out more in Gifts and transfers exempt from Inheritance Tax.

Once you’ve received your inheritance, you might have to pay either income tax, capital gains tax or both, depending on what you do with your inheritance.

• If you invest your inheritance in something that generates an income, or you inherit an income producing asset, such as a rental property, then you’ll need to pay Income Tax on that inheritance.
• If you sell the asset that you inherited and it has increased in value, you’ll need to pay Capital Gains Tax.

The tax will be on any gain in property value which has arisen between you acquiring the property and selling it. If you look up Capital Gains Tax on the HMRC website, there's a handy calculator under the 'Report and Pay...' section. You can deduct professional fees and the cost of any improvements from the gain; there is an annual allowance (separate from the personal allowance for income tax) and the tax rate depends on which income tax band you are in.

GDB2222

Did you go through probate?

Did you pay inheritance tax?

How does the probate value of the house compare with what you sold it for?

macman

How do you seriously expect anyone to quote you the 'rules' without the figures? The rules are in part determined by the figures, in relation to both IHT and CGT.
First thing you need to clarify is if 'you' sold the house; or the estate sold it? If the estate sold it, with you as the beneficiary, then no tax is payable. If you actually owned it for a time, and it was not your main residence, then CGT may be payable. But dependent on the figures...
If CGT is due, you have 30 days to pay it from date of completion.

AdrianC

The estate may have had to pay IHT last year.
You may have to pay CGT now.
Without numbers, no more can be said.

csgohan4

If your not sure and not willing to give details, pay a professional who deals with this