CGT on inherited House

Bumble23

Hello

I'm in the middle of selling my Mothers Home which i will be receiving 50% of the profits and my other siblings with share the other 50%. The House has been valued at £250k and my Mother bought the house when it was first built for 13k. Will we be liable for CGT?

fengirl_2

Not enough information. Is your mother still alive? Was the house her only or main residence throughout the period she owned it? Are the sale proceeds part of her estate if she is deceased?

Bumble23

Sorry she has passed away. Yes it was her main Home. The house has been to probate and the valuation was 250k when that was done 3 months ago, Was reevaluated on Monday and they still reckon it is 250k.Other then the House she did not have any other belongings of value.

MoneyMagician

Bumble23 wrote: »

Sorry she has passed away. Yes it was her main Home. The house has been to probate and the valuation was 250k when that was done 3 months ago, Was reevaluated on Monday and they still reckon it is 250k.Other then the House she did not have any other belongings of value.

Assuming you had no interest in the property prior to your mothers passing, there will be no Inheritance Tax or CGT to pay.

Providing the value of her estate does not exceed £300k (07/08 tax year) or 312k (08/09 tax year) (depending on which tax year she died) and the value of her estate does not exceed that threshold, you will have no Inheritance Tax to pay on her estate. From what you describe, her main contributor of her estate is a house valued at £250k, so you should be within the threshold.

For any assets, family heirlooms etc she may have left you, there may be CGT to pay in the future if you dispose of them, but they will have a deemed cost of the value included in the IHT estate, meaning that only a gain from this point on will be taxed. Remember you will also have you annual CGT allowance (of £9,200 for this tax year) which which to offset any capital gain.

I hope this helps.

MoneyMagician.