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TaxRobin
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Please can you advise me.. if you own a property and inherit

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Please can you advise me.. if you own a property and inherit a property from your parents if you then want to sell the inherited one do you have to pay capital gains tax? Is there any way to avoid paying it or reducing the amount to a minimum. Thanks
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
If the inherited property is property that you lived in as your main home from the time you inherited 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.
If you sell or dispose of a property that does not qualify for Private Residence Relief you must work out the gain or loss.
If you used the property for business then you may have relief from CGT.
If you inherited it after 31 March 1982 - you use its market value on the date of death of the person who left it to you as the cost. Your gain or loss will be the difference in cost and sale price.
Make sure you use the correct cost amount so you report the correct gain or loss.
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