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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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A property was inherited by my wife and and her brother on

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A property was inherited by my wife and and her brother on the death of her father some years ago. Her father was a widower having previously lost his wife.
JA: Have you talked to a tax professional about this?
Customer: It was decided to renovate the property and it has been rented out for some years since. The property in question is not the main residence of wither my wife of her brother who are now considering selling this. My question therefore is as an inherited property, as opposed to a purchased one, would there be any Capital Gains liability on the sale?
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: Not that I can think of

Hello and welcome to JustAnswer. I’mCustomer a UK based qualified accountant and tax advisor. I’m here to assist you. I’m reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question "as an inherited property, as opposed to a purchased one, would there be any Capital Gains liability on the sale?"

Sale of a residential property triggers a chargeable event whether the property is purchased or inherited. Your base purchase price in this scenario of inherited property is the probate value of property at the time of death. As the property was not used as a main residence  since inheritance there are no reliefs available against the gain.

You add capital improvement costs plus costs associated with the sale of property and deduct these from the gain (net sales proceeds minus probate value) in arriving at gain chargeable to capital gains tax. As there are two beneficiaries each one will claim gains allowance against their share of chargeable gain and the rest will be taxed at CGT rate of 18%, 28% or a combination of both depending on individual's total income including share of gain.

My aim is to give you a professional service. I hope this is helpful and answers your question.

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Just checking to see if you need me to clarify anything or if you have any additional questions - I am happy to help!

Many thanks

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