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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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If a property is inherited or transferred without any

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If a property is inherited or transferred without any payment being made to someone who already owns their own house, can it be sold on without incurring tax?

Hi. My name is Tony. I'm looking at your question now and will post my answer or ask for more information here in a short while.

If you inherit a property then your cost for CGT purposes is the value at the date of death of the person who left it to you. Only the increase in value from that date would give rise to a taxable gain if the property was sold.

 

If a property is gifted to you then your cost for CGT purposes is the value at the date it was gifted to you. Only the increase in value from that date would give rise to a taxable gain if the property was sold. However, the person who gifted it to you would be treated as if they had sold the property to you at its open market value and may incur a CGT liability. The gift will also be a gift for Inheritance Tax purposes, the value of which will stay in their estate for seven years after the gift is made.

 

I hope this helps but let me know if you have any further questions.

Customer: replied 3 days ago.
Thank you for your answer. It is very helpful
JA: Have you talked to a tax professional about this?
Customer: Tony Tax
JA: Anything else you want the Expert to know before I connect you?
Customer: No thank you

Thanks.

 

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