CGT on 2nd property?

eileenfromplaistow

10years ago we bought a house for125k for my daughter and grandkids to rent. It is in my name for tax purposes and was a cash purchase.
We've done improvements, but there is probably a cgt liability .
If I died tomorrow, would that cgt have to be dealt with immediately.? Currently my husband and I have no will, but I am trying to work out what to do with this house in a will as my daughter still needs to live there.
Our house is is worth about 500k and we have3 daughters that will eventually inherit equal shares as we are joint tenants.
Thanks for reading

Keep_pedalling

CGT will only apply if you dispose of it in your lifetime, there will be none to pay by your estate. It could however be subject to IHT. What did you pay for it? What is its current value?

what do you want to happen to the second house on your death?

eileenfromplaistow

Paid 125,000 and could sell now for.   200, 000 , but I did put a rear extension on, new boiler. I have no savings or pension . 
I was wondering if I should leave it to the girls, so it's out of my husband's estate eventually. 
I just like something considered before seeing a solicitor ( looking intelligent!!)

Keep_pedalling

eileenfromplaistow said:

Paid 125,000 and could sell now for.   200, 000 , but I did put a rear extension on, new boiler. I have no savings or pension . 
I was wondering if I should leave it to the girls, so it's out of my husband's estate eventually. 
I just like something considered before seeing a solicitor ( looking intelligent!!)

If you did sell it or gift it to your children  the cost of the extension could be deducted from your gain, but not the boiler. As the value of the house is well below your NRB IHT is not an issue if you left to your children. Jointly you and your husband can leave £1M IHT free so unless your husband has significant other assets IHT is not something either of you need to plan for.

You should not put off making a will unless you are happy for your husband to inherit everything as would be the case if you died intestate.