Inheritance tax help

CLAPTON

Probably a bit out of my depth here, as usually, if a property is registered in someone name then its theirs. However, given the history and the will I would assume the HMRC would accept that the property was efffectively jointly owned by you and your neice.

On that assumption it would work like this

Vakue of the land as of 2004 .... you would neeed to try to deduce this but lets say 120,000

so gain = 190,000 - 120,000 = 70,000
less costs 49,500
giving 20,500

so assuming ownership is half and half your share is 10,250
but you each have a CGT allowance of 9,200 so you are liable to tax on
1050
assuming the exchange of contracts before 5th april then
this you pay at 10, 20, 40 % depending upon what tax band you are in (well its added on 'top' of your other income and taxed accordingly).

if you gave half of your share to your wife before the sale then you would have no tax to pay at all but you may consider this isn't worth the trouble.

brian01

Thanks clapton

this is a big help so as my income is 35,000 does this mean i will have to pay what price would the tax have to be paid at

CLAPTON

assuming you have a 522L tax code you pay at 20%

brian01

clapton thanks for your help i am sure your not really out of your depth your advice seems pretty sound to me

keikoyule

Through pay pal transaction more percentage is deducting is ther any other way to save money.