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ukfamilysolicitor
ukfamilysolicitor, Solicitor
Category: Law
Satisfied Customers: 979
Experience:  Qualified Solicitor Currently specialising in Family. Also experienced in Corporate, Employment, Civil Litigation, Debt Recovery
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My mother and dad died within 3 months of one another leaving

Customer Question

my mother and dad died within 3 months of one another leaving everything to my sister and myself house valued £500,000 with some money which me and my sister have just received from the solicitors around £28.ooo solicitors fee around £30,000 funeral was payed by my father. If we should get the sale of the house ar that figure would my sister and I have to pay heritage tax. many thanks val
Submitted: 1 year ago.
Category: Law
Expert:  ukfamilysolicitor replied 1 year ago.
Hello
Welcome to Just Answer
I am a Solicitor and will assist you.
Inheritance tax is currently payable if the estate is more than £325k. This is known as the inheritance tax threshold.
The estate is classed as property, possessions and money.
Anything over the threshold is taxed at 40%.
If more than 10% of the estate to charity then the rate can be reduced to 36%
The estate of the person who died usually pays Inheritance Tax. Therefore the estate will be reduced by the amount of tax payable.
You don’t usually pay tax on anything you inherit at the time you inherit it.
You may need to pay:
- Income Tax on profit you later earn from your inheritance, eg rental income from a property
- Capital Gains Tax if you later sell the property you inherited - this will be based on the increase in value of the property following the date of death and date of sale - you also have a tax free allowance of £11,100 in the current tax year so if there was a gain - it might not necessarily mean there is a tax bill
See these for more info:
https://www.moneyadviceservice.org.uk/en/articles/calculating-and-paying-tax-after-someone-dies
Kind Regards
Caroline
Positive feedback is gratefully received.
Expert:  ukfamilysolicitor replied 1 year ago.
please kindly remember to rate positively