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  • FIRST POST
    • Tduffy666
    • By Tduffy666 5th Jul 18, 7:38 PM
    • 2Posts
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    Tduffy666
    Capital gains on inherited property
    • #1
    • 5th Jul 18, 7:38 PM
    Capital gains on inherited property 5th Jul 18 at 7:38 PM
    Hi, can anyone advise on where I would stand if I wanted to sell property left to me by my father.

    My dad is alive & well, has a primary residence & 2 investment ( buy to let ) properties. These investments were bought back in the 1980s on a USAF base in Cambridge area & they were cheap - about 15k each.

    If these properties are left to myself where would I stand if I wanted to sell?

    Is the CGT calculated from when my Dad bought them ie a massive CG?
    Or is the CGT calculated from my ownership?

    Thanks
Page 1
    • Hoploz
    • By Hoploz 5th Jul 18, 7:43 PM
    • 3,686 Posts
    • 3,227 Thanks
    Hoploz
    • #2
    • 5th Jul 18, 7:43 PM
    • #2
    • 5th Jul 18, 7:43 PM
    Dad's estate may come in for inheritance tax.

    You would be liable for cgt only for the period you owned them. If he leaves them to you.

    Alternative arrangements could be made to avoid tax if he gets organised.
    • p00hsticks
    • By p00hsticks 5th Jul 18, 7:46 PM
    • 6,284 Posts
    • 6,776 Thanks
    p00hsticks
    • #3
    • 5th Jul 18, 7:46 PM
    • #3
    • 5th Jul 18, 7:46 PM
    When your dad dies if he still owns the properties they will form part of his estate for inheritance tax (IHT) purposes, and so would need to be valued for probate. If any IHT is due then the money comes from his estate - although if there is insufficient cash in the estate it may mean that one or more of the properties would need to be sold to fund the IHT due.


    Once any IHT due is paid, then if the property passes to you and you then sell, you would only potentially be liable for Capital Gains on any gain made over the probate value.
    • kinger101
    • By kinger101 5th Jul 18, 7:48 PM
    • 4,380 Posts
    • 5,980 Thanks
    kinger101
    • #4
    • 5th Jul 18, 7:48 PM
    • #4
    • 5th Jul 18, 7:48 PM
    CGT is not payable on uncrystalized gains when someone dies. Depending on the size of the estate, IHT might be due.

    The base cost of your property for CGT will be the probate value.

    Your father should probably see a solicitor about his will and estate planning.
    • Tom99
    • By Tom99 6th Jul 18, 3:51 AM
    • 2,385 Posts
    • 1,609 Thanks
    Tom99
    • #5
    • 6th Jul 18, 3:51 AM
    • #5
    • 6th Jul 18, 3:51 AM
    Tell your dad his dying will be a good way to avoid CGT, I am sure that will cheer him up!
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