Inherited share in house (main residence/ beneficiary) and CGT

psychobubble

Hi All
my Late mum was a widow and died in Nov 22 leaving estate 3 way split between myself and 2 siblings. One sibling was going to buy it but hasn’t sold their house yet so can’t. We have discussed Deed of variation  but one sibling not keen. I am living there as my main residence and don’t own another property yet.

 I was about to buy another property and we will sell my mum’s house ( still in her name).

In view of potential changes in CGT on inherited houses potentially coming in in the budget (where CGT may be worked out on the total increase in value since purchase) would I avoid any CGT if I don’t purchase another property as my main residence at this point?
Either way we will be selling the property as soon as possible.

 Would it make more sense financially to sell this house before i buy another main residence? The house is still in my mum’s name?
thanks for any advice

Keep_pedalling

Legally the house is owned by the estate and the estate is going to be liable for any CGT. There are lots of speculation on CGT changes but the chances of it the exemption on main residences are zero as it would crash the housing market. 

psychobubble

Thank you!
So at the current time am I right in thinking that the cgt cost is 24% on any increase in value of the property since probate valuation (and that cgt wouldn’t be according to your individual circumstances ie whether you own another house or not or depending on your own earnings/tax bracket you are in?)

mattojgb

If the property is transferred directly to all the beneficiaries then the estate has no CGT to pay. Any gains when it is subsequently sold will be subject to CGT based on the probate valuation. If it is (or has been) your main residence when you sell you will be able to claim PPR relief - but only on your share. The other beneficiaries would not be entitled to that relief. You are currently allowed £6000 gain before paying.

I'm not sure what happens if it transferred directly to only one of the beneficiaries (in the absence of a deed of variation).