2nd property

Kug46789

Myself, along with my brother and sister, have recently inherited a property from my grandparents.

My grandmother passed away in 2022. Due to the executor of the Will not completing the probate any sooner, the property was officially signed over to the 3 of us in July 2024. The property went straight on the market and has now sold to a cash buyer and the money from the sale is to be split equally between the 3 of us. 

I am the only one between the 3 of us with a mortgage so this property would be classed as a 2nd home for me.

Who do i need to notify that this is a 2nd home and that the property has now sold (for potential tax purposes)?

Is there any other legal stuff i need to sort in order to avoid any potential fines i could get in the future? I would rather everything is done legally. 

DE_612183

Inheritance Tax? - Thats all three of you.
Capital Gains Tax - Thats all three of you as well.

There are threasholds and exceptions which might apply.

2nd homes is really only when buying and thats stamp duty.

Kug46789

We know there wont be any inheritance tax because the property has only been in our names since July this year and it was signed over to us within 2 years of my grandmother passing away.

We also know we wont pay Capital Gains Tax as its sold for less than it was originally valued at.

Thank you for your help/response though

thegreenone

Why was it changed into your names?  That's, usually, unnecessary.

It could have been sold in your grandmother's name and the deeds etc would have been altered after sale by the solicitors.

Bigphil1474

OP, you should be 99% confident you won't have to worry about anything.

Did you inherit the house itself, or the proceeds of the sale of the house? Either way, between July and now you are unlikely to need to pay any CGT, if not certainly not required to. I've been through that process twice in the last 2 years (unfortunately), and as beneficiary have just taken my money and stuck it in the bank, and got on with life. 
You don't own a second home once it's sold and there's no tax to pay on a second home in these circumstances. If you had all decided to keep hold of it for a couple of years, rent it out, and then sell it, there might have been.

There is no inheritance tax for you to pay either. That's what the executor sorts through the probate i.e. you receive your share of the estate after inheritance tax is sorted, if there is even any to pay. Don't worry about it.

Keep_pedalling

DE_612183 said:

Inheritance Tax? - Thats all three of you.
Capital Gains Tax - Thats all three of you as well.

There are threasholds and exceptions which might apply.

2nd homes is really only when buying and thats stamp duty.

IHT, if any was due, would have been paid by the executor and should already have been sorted by now.

RAS

Kug46789 said:

Myself, along with my brother and sister, have recently inherited a property from my grandparents.

.......the property was officially signed over to the 3 of us in July 2024. The property went straight on the market......

I am the only one between the 3 of us with a mortgage ..........

Does this mean that your siblings have never previously owned a home? If so, the executor has done them a dis-service as they will have now lost any first time buyer benefits. It would have been much better to have sold from the estate.