capital gains tax

avalonultra

Can anyone help me with this please ? My in laws owned their house as Tenants in Common which meant their share of their house was independent of the other. My Mother in Law died in 2010 leaving her share of the house to her 2 children equally. Probate was granted The house was retained and let out whilst my Father in Law was alive. He died in 2024 leaving his share of the House to the same 2 children equally. Again Probate was obtained. I am trying to establish how to approach whether any CGT is payable. Do I take the Probate Value of the house in 2010 as my starting point for the baseline of the value of the childrens inheritance ? Each child effectively got to own 25% of the property at that time. So in terms of the maths 25% of the then Probate Valuation to each child.  Do I then take the Probate valuation of the property when my Father in Law died last year and again allocate 50% of his share ( in practise 50% of 50% of the property ) as the starting point for CGT ? Do I then add these 2 baseline figures together  ? The house has now been sold . Any help would be welcome. thank you

Keep_pedalling

Just for clarification was mother’s share of the house left to the children outright, or did the will grant her husband a life interest in the property? The latter would be the normal and most tax efficient way of doing it and would avoid any CGT liability on the children.

Where was he living while the home was being rented out? Who received the rental income?

DRS1

If there was a firm of solicitors involved in 2010 and 2024 (perhaps drafting the wills as well as getting the probate) wouldn't it be a good idea to ask them?  For one thing they will know the precise nature of the children's interests and when they took effect.