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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13863
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Selling house out of last parent's estate at less than 650K,

Resolved Question:

Selling house out of last parent's estate at less than 650K, but more than probate valuation 2years ago. Are my sibling and I liable for CGT in UK?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question
Was the house left to the surviving spouse only ?
Thanks
Sam
Customer: replied 2 years ago.

House left to 2 sons.

Expert:  Sam replied 2 years ago.
Hi
Thanks for your response
Did the two sons inherit from the date the first spouse passed away or this latest passing ? I am trying to establish whether this is just considered for Inheritance tax or whether capital gains comes into the equation.
Talk me through the property and its ownership from when both parents were alive.
Thanks
Sam
Customer: replied 2 years ago.

Jointly owned by father & Mother, father died1984 his share left to mother. Mother died 2011 Property left to 2 brothers. Don't think IHT is a factor.

Expert:  Sam replied 2 years ago.
Hi
Thanks for your response
Thank you - I needed to establish the correct period of time and position for this property.
If neither of you have lived in this property as your main residence, then yes you will have a capital gain position to consider as there has been an increase since the date you inherited it and the sale date.
For each of your shares the first £11,100 (if sold after 06/04/2015) will be exempt and any remaining gain liable to capital gains tax.
The rate of capital gains will be
If your total annual income is in excess of £42465 then it will be liable to 28% if your income is less than this threshold but more than £10,600 - then you will have unused basic rate band which allows the equivalent of capital gains at 18% and any remaining gain at 28%
Let me know if I can be of any further assistance
Thanks
Sam
Customer: replied 2 years ago.

Does this apply as we are selling out of estate and property has not been registered in either of our names? Ever hopeful!

Customer: replied 2 years ago.
Relist: Other.
not sure that relevance of selling out of estate was recognised
Expert:  Sam replied 2 years ago.
Hi
Thanks for response - yes - as it should have been transferred back in 2011 and the estate should have been finalised - is this not the case?
Thanks
Sam
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