Capital Gains Tax do we need to pay anything.

pothole71

Finally we have sold the house and exchange contracts, unawares to us the house was in my father in laws name and when he passed in 2016, we automatically assumed my mother in law inherits all. But she had dementia so my wife got the letter of admin to handle her father’s estate, on behalf of her mum.She has now passed so the house goes to my wife, her sister and her two nieces. We had problems with land registry saying the two letters of admin my wife had were not enough to change the house into my wife’s name and we needed a de bonis non as mum had not registered it in her name and we assumed it was joint owned. We got that it satisfied the land registry and the sale went through.

My question is the house was valued at £175000 when dad died, and £210000 when mum died as it needed work, like central heating and windows decorating and carpets to become a rental.

We sold it for £200000 minus estate agents and solicitors fee, the terraced properties around that area are fetching between £240000 - £260000.

Would we need to pay Capital Gains tax, and would it be from when my father died or when mum died.

Do we need an accountant to sort it.

Thanks for looking.

Bigphil1474

My understanding is that it was in FIL name, then MIL inherited , now your wife inherited (and others). There should be no CGT between the first 2 assuming MIL carried on living in the property. There may be some CGT for between MIL and wife et al, but that would depend on value used as part of probate. Basically increase in value between MIL death and sale of property minus an allowance. Which may be £0 if it was sold for less.

Based on the information provided, I would say it's unlikely there'd be any CGT to pay, but worth getting an accountant to confirm.