Did I have to pay the full inheritance tax on my mothers house, as she was letting some of it out? Business tax relief?
My Mother, who was a British citizen, passed away in 2007, leaving her assets solely to me, her son. The vast majority of her assets I value was a Victorian house , located in London.
I , the son, am also a UK citizen, paid substantial inheritance tax, mainly on the value of the house.
My mother lived on the ground floor of the house, but the two top floors were let to tenants, and her annual income tax returns included the income from these tenants.
My question is: Should I have applied for some inheritance business tax relief on the inheritance tax which I paid?
yes , 2 flats on each floor,4 flats in total. each flat had own kitchen, own shower, but shared toilet on each floor.
I am now looking after the flats and renting them.
I am not sure on this point. At one time, one of the tenants offered to buy one of them. I think it might be possible , but an agreement would have to be made to share the cost of maintaining the house.
I think it might be possible. Usually in the property market anything is possible.