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bigduckontax, Accountant
Category: Tax
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I inherited my parents' property but when it was sold four

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I inherited my parents' property but when it was sold four years ago the capital gains tax wasn't paid and I now have to pay extra as a result. Should it have been my responsibility or the solicitors' responsibility to deal with the payment at that time?

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

Was this property sold out of the estate or by you as owner?

Customer: replied 1 year ago.
Hello KeithIt was sold out of the estate
Customer: replied 1 year ago.
Sorry, that was incorrect. It was sold by me.

Unless it was your sole or main domestic residence then it falls to you to declare any capital gain made to HMRC and pay any Capital Gains tax (CGT due. You have a non cumulative Annual Exempt Amount (AEA), currently 11.1K to offset the gain. I assume that you did not live in this residence or let it out.

Customer: replied 1 year ago.
Hello KeithThanks that answers my question. There was a £10,000 (approx.) difference so I have to pay about £2,800 according to solicitors, but would that not be covered by the Annual Exempt Amount? I'm not sure what that is. If it's not, you needn't respond again and thanks for your help.

Were the gain 10K as you suggest than this would be covered by your AEA and there would be no CGT to pay. I suggest that you refuse to pay the solicitor's bill and seek guidance from another professional with a better grasp of CGT than is currently being displayed. Were, of course, there be 10K over the AEA then you would have to pay tax on that amount which would be levied at 18% or 28% or a combination of the two rates depending upon your income including the gain in the tax year of disposal.

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