My father passed away 9 years ago and his estate was divided between my mother, brother and myself.
Using the inheritance we purchased a house for our mother, she is now looking to move into a care home and we will be looking to sell the property.
What will be the tax implication of the sale and is there a preferable course of action that will mitigate any tax that might be due.
Questions And Answers
Selling a house bought by Inheritance
asked by Mickhael Amiin posted 2 Years ago at 11:48
1-2 of 2 Answers
Carl Hope answered 2 Years ago at 13:38, last modified: 2 Years ago at 14:56Hi Mickhael, if this is the only property you own ie. you do not own another property then there will be no tax to pay. If you and your brother both have other property then you would be laible for capital gains tax. This is calculated from the date you bought the property and it the pprofit which is taxable. Both you and your brother have a capital gains tax allowance of £10,100 which you can both offset against the gain. The remainder will be taxed as follows, the first £37400 is taxed at 18% and the rest would be taxed at £28%.
Hope this helps?
Stephen Pett answered 2 Years ago at 15:59, last modified: 2 Years ago at 14:56It is not clear who owns the house - legally?
If it is only in your mothers name, there is no CGT issue at all but the proceeds will go to pay care fees (until their is just £24,500 (if memory serves) of assets left, then the Local Authority may chip in. Once only £12,500 is left they MAY pay the bill. A Home Protection Plan might have left the options with you, rather than with the local Council!
Couples can do (cheaper and simpler)Protective Property Trusts Wills but they only protect half of the home.
Both schemes are IHT neutral.
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