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IHT
cjbchris
Posts: 3 Newbie
in Cutting tax
Hi All
Just doing some estate planning.......... My son is a reluctant 'landlord' and has property he, and his family live in, and a property he rents out. If I 'leave' my own resdential property to my son, in my will, to take benefit from the 'residence nil-rate band' (extra £175K on top of IHT allowance) would there be any capital gains tax liability, or other liability, for him if he were to sell the property he inherits?
Many thanks
Just doing some estate planning.......... My son is a reluctant 'landlord' and has property he, and his family live in, and a property he rents out. If I 'leave' my own resdential property to my son, in my will, to take benefit from the 'residence nil-rate band' (extra £175K on top of IHT allowance) would there be any capital gains tax liability, or other liability, for him if he were to sell the property he inherits?
Many thanks
0
Comments
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If he doesn’t live in it after he inherits it - Yes!However:He will only pay CGT on Sale proceeds less costs of sale less probate value. There is also the annual exemption, currently £6000, to consider.1
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You get the residence nil rate band in most cases - if your son sells it immediately; if the executor sells; if you sell and move into rented or other accommodation; if you sell and downsize to something worth less than the £175k...But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll1 -
Only if the executors under estimate the value for probate or take an age to sell it. CGT will only be payable on any increase in probate value and amount sold for.
Would your son inheriting your estate put his estate into (or further into) IHT territory? If so you might like to investigate leaving some to the next generation.0
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