Time allowed after probate to sell house
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MickEa64
Posts: 8 Forumite
Bit of knowledge sharing Required.
I recently inherited my fathers house which is in a very run-down state.
I have obtained probate and are starting to renovate the house, but being hit by Tree preservation orders causing significant delays
I do not want to transfer the house into my name as would then be hit with Capital gains tax when sold.
How long can I take to tidy the house up, leaving it in my dads name before I get any issues.
I recently inherited my fathers house which is in a very run-down state.
I have obtained probate and are starting to renovate the house, but being hit by Tree preservation orders causing significant delays
I do not want to transfer the house into my name as would then be hit with Capital gains tax when sold.
How long can I take to tidy the house up, leaving it in my dads name before I get any issues.
0
Comments
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In your case CGT would be calculated between the probate value and the sale value, so it matters not when you register your ownership with the LR.
You will be able to deduct selling costs from you gain, but not the costs for simply doing the place up, and replacing things like boilers, so I would think carefully before launching on this project.0 -
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Bit of knowledge sharing Required.
I recently inherited my fathers house which is in a very run-down state.
I have obtained probate and are starting to renovate the house, but being hit by Tree preservation orders causing significant delays
I do not want to transfer the house into my name as would then be hit with Capital gains tax when sold.
How long can I take to tidy the house up, leaving it in my dads name before I get any issues.
The estate only has the £12,000 annual CGT exemption for the tax year of death and the 2 following tax year.
The estate pays CGT at the higher rate of 28% whereas if you are a basic rate taxpayer you would pay 18%.
So rather than saving CGT you may be lining yourself up to pay a lot more.0
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