Capital Gains on Property used for Business?

D*G_3

I have been using my mum's house - renting it out as a holiday rental. It is her only property in the UK. Would I have to pay capital gains tax on inheriting the property?

p00hsticks

If it's still in her name, then it would be her, not you that would be liable for any CGT if she disposes of it before her death. When she dies the CGT liability disappears and it would form part of her estate for IHT purposes instead. Assuming she leaves it to you, you'd inherit it at the value declared for probate, and any future gain after that when you came to sell would be a CGT liability. 

Presumably you (or rather your mother as she owns the property) are currently declaring the rental income to HMRC ?

Brie

You assume you will inherit it but perhaps it's a valid assumption.  Does mom live in the UK and if so what's her situation?  If she's in care then there's the possibility that the house will need to be sold to pay for that care.  If she's not in the UK she may need to sell up as well.  Presumably the rent being collected is her income?

but meanwhile from gov.uk

When someone dies

When you inherit an asset, Inheritance Tax is usually paid by the estate of the person who’s died. You only have to work out if you need to pay Capital Gains Tax if you later dispose of the asset.