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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13980
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I inherited a house with a small amount of land from my

Customer Question

I inherited a house with a small amount of land from my mother, jointly with two siblings. In 2016 I signed away my third share equally with my two sibs, with no exchange of money. Do I need to declare this on my 2016-2017 tax return, and how do I do this?
Submitted: 16 days ago.
Category: Tax
Expert:  Sam replied 16 days ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 16 days ago.

HI

Thanks for your patience

If the value of this house and land had increased between the date you inherited it and when you transferred it - then you have a capital gain to declare (even though you received no money for this transfer) But if your share of this increase in value was less than £11,100 then you have no need to declare anything.

So the question is what was the value at Inheritance and the value when you signed it away, and how much of a share had you inherited and to whom id you make this transfer.

You also have Inheritance tax to consider as you will be treated as having make a gift, and should you not survive moe than 7 years then this has to be considered within your estate for Inheritance tax purposes. If, however your estate (including the value of your share of this property) is less than £325,000 in total then there is not going to be any Inheritance tax consequences

Do let me know about the values and I can advise further regarding Capital Gains

Thanks

Sam