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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4340
Experience:  FCCA FCMA CGMA ACIS
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THERE ARE 4 ADULTS AND 1 CHILD(ONE OF THE ADULTS CHILDREN)

Customer Question

THERE ARE 4 ADULTS AND 1 CHILD(ONE OF THE ADULTS CHILDREN) set to inherit our nans hose valued at 146,500 HOW MUCH CAPITAL GAINS TAX WILL WE ALL PAY AS THE 4 ADULTS ARE ALL HOMEOWNERS AND 2 WILL BE ON THE HIGHER TAX BRACKET ALL ADULTS ARE WORKING
Submitted: 13 days ago.
Category: Tax
Expert:  bigduckontax replied 13 days ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

The glib answer is nothing as there is no Capital Gains Tax (CGT) on death all assets being aggregated for inclusion in your Nan's Inheritance Tax (IHT) computation. As IHT does not kick in until 325K of assets it would appear that there will be no IHT bill on decease. Furthermore, for the family home left to children, the IHT 325K limit is being successively raised to 500K between 2017 and 2020. Also your Nan can inherit any unused IHT limit from her husband.

I do hope that I have resolved your conundrum.

Customer: replied 13 days ago.
no not really what penalties will there be if we sell on the property in tax I thought it was 20 and 28percent and none for a minor
Expert:  bigduckontax replied 13 days ago.

If there is a delay in sale between probate and distribution there may be a CGT liability, a matter for the executors or administrators of Nan's estate. If you have already inherited than there might be a CGT liability on each individual including the minor based on their share of any gain made from probate value. This would be taxed at 18% or 28% or a combination of the two rates depending on the individuals' income including the gain in the tax year of disposal. Each of you have a non cumulative Annual Exempt Amount (AEA) of 11.3K to offset such gains.