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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4189
Experience:  FCCA FCMA CGMA ACIS
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i have resently inherited a house worth around £250k from my

Customer Question

i have resently inherited a house worth around £250k from my mother. I am living in rented having sold my home 8months ago to look after mum. I do not particularly like mums house and would like to sell and buy something more suitable. Am i going to be subject to capital gains bearing in mind it is my sole property?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

If you have resided in that house after your mother died you will be able to claim Private Residence Relief and not be subject to CGT.

Does your work preclude you from living in your mother's old house?
Customer: replied 3 years ago.


Hi, mum has only very recently passed away and I am living as stated in a rented house. At this moment her house is unoccupied. However,when the conveyancing is done it appears from other sites that as this is my sole "owned" property the only CGT that would be liable is any increase in value since mum died? - is that correct?

 

What is the length of time I would need to reside there for it not to be subject to CGT?

Expert:  bigduckontax replied 3 years ago.
Correct, it would be valued for probate and any gain would be calculated from that. Remember you have an Annual Exempt Allowance of 11.1K which would reduce your liability considerably.

As regards XXXXX XXXXX this is a moot point. The general consensus is that it must be for at least three months. There is a concession, the last 18 months do not count, you are deemed to reside for that period (it used to be 3 years) to get Private Residence Relief. The year of sale does not count also.
Customer: replied 3 years ago.


Hi, Sorry to be a pain but if I lived there from when mum dies (30th March) until (say) october would tis comply if I then sold it?

Expert:  bigduckontax replied 3 years ago.
You should have no problem and be entitled to Private Residence Relief which would relieve you of any CGT liability.
Customer: replied 3 years ago.

thank you - thats what I needed to understand!

Expert:  bigduckontax replied 3 years ago.
Pleased to be of assistance.

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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.