IHT or CGT on inherited house

hkymre

My wife is due to inherit her late aunties estate, including house. She is not an executor of the estate.
Probate was applied for a couple of weeks ago.

Since the house was valued 9 months ago the property has increased considerably in value.

Are we correct in thinking that the solicitor dealing with the estate can transfer the property ownership to her so that she will pay CGT on the gain, when sold, rather than the executor selling the house & IHT being payable?

Thrugelmir

The property is valued at the date of death. If the property subsequently sells for a higher amount. Then the estate would become liable for CGT. 

bobster2

You may have to pay both. If the estate (including the value of the house at the date of death) is liable for IHT - then you have to pay IHT whether or not you sell the house.

Then if it is sold some time after death - and it increases in value during this period - then CGT could also be due.

Keep_pedalling

Thrugelmir said:

The property is valued at the date of death. If the property subsequently sells for a higher amount. Then the estate would become liable for CGT. 

HMRC could question the original valuation if the value has jumped a large amount in a short period. If they come up with a higher valuation at the time of death then additional IHT may be payable rather than CGT.

PennyForThem_2

The estate pays IHT not the recipient of the asset! It might be that the estate needs to sell the house in order to pay any IHT (if not enough other easily liquidable assets or no IHT insurance i.e. life assurance).

Don't know enough about CGT, other than if beneficiary sells the asset and it is not their main residence then they may become liable for CGT.