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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34233
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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I have inherited a property which I plan to move into as there

Customer Question

I have inherited a property which I plan to move into as there is no inheritance tax, is there a certain time period that i would have to live in the property as i plan to sell the property in the future as wanted to see if I would still have to pay any inheritance tax in the future should the property rise in price thanks
Submitted: 3 years ago.
Category: Property Law
Expert:  Clare replied 3 years ago.
Hi
Thank you for your question
My name is Clare and I shall do my best to help you but I need some further information first
Has the property been transferred into your name/
Clare
Customer: replied 3 years ago.

in the process of the title deed going in my name

Customer: replied 3 years ago.

will be transferred into my name

Expert:  Clare replied 3 years ago.
Hi
Once the deeds are in your name then the Transfer of the property has taken place and Inheritance Tax is no longer a problem at all.
The only future liability you will have to be concerned about is Capital Gains Tax
I hope that this is of assistance - please ask if you need further details
Clare
Customer: replied 3 years ago.

would i still have to pay Capital Gains Tax even if i live in the property as my main residence and decide to sell the property at a later date thanks


Capital Gains Tax when selling or 'disposing of' a property


If you inherit and dispose of a property you live in


If the inherited asset is a property that you live in as your main home from the time you inherit it to the time you sell or dispose of it, you may not have to pay Capital Gains Tax when you dispose of it. This is because any gain you make when you dispose of your main home may be free of Capital Gains Tax through 'Private Residence Relief', whereas a gain on any other home may not be.

Expert:  Clare replied 3 years ago.
Hi
Correct - but once the property is in your name this is the only tax you risk - and then only if you move out and do not sell for three years
Clare
Customer: replied 3 years ago.

so i would have to live there for 3 years to be exempt from capital gain should i sell the property thanks

Expert:  Clare replied 3 years ago.
Hi
No not at all.
Even if you only live there a month you are exempt PROVIDED you sell within three years
Clare
Customer: replied 3 years ago.

i did not live in the property at the time that i inherited the property but plan to live in the property as my main home soon,just wanted to check I would still be exempt from capital gains when i sell


thanks

Expert:  Clare replied 3 years ago.
Hi
Yes you will still be exempt
Clare