Talk

Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Capital Gains

(10 Posts)
Martin10 Thu 02-Mar-17 11:35:22

Not sure if anyone can help but I'll ask :-

Capital Gains question, unfortunately my Mum has passed and I have inherited 50% of her property, the property was in mine and my sisters name from 2001. My accountant tells me I can roll over the CG for upto three years or have three to invest in either a business or another property, is this correct?

All I have inherited is the property no other wealth from her estate, where my sister has had the lot.

My sister lived at the property with my Mum, I have not lived there since 1993.

JoJoSM2 Mon 06-Mar-17 23:25:12

If it's been in your name since 2001 - i.e. you have owned it for 16 years - why would you suddenly pay CGT?

Badbadbunny Tue 07-Mar-17 09:20:11

You need to clarify the exact circumstances/detail. You say you've inherited 50% of it, but then say it was in your and your sister's name from 2001. Those two statements contradict eachother.

Viviennemary Tue 07-Mar-17 10:48:32

This is my understanding of the rules. If you inherit and keep a property then the capital gains tax is payable on the amount the property increases from the time you inherit it until the time it is sold. You are allowed an allowance free of capital gains tax but it isn't much in the grand scheme of things.

Viviennemary Tue 07-Mar-17 10:52:18

I see that the property has been in your name since 2001 so you haven't exactly inherited it in legal terms. In which case for you it will be counted as a second home if you already own a home. Ask your accountant to explain things.

Martin10 Tue 07-Mar-17 18:21:45

I'm new to all this so my wording may not be clear.

Said property was transferred into our names in 2001, my sister and I.

My sister remained in the property with my Mum but I had already moved out, I have never received any income from the property or supported the upkeep of said property.

My Mum recently passed, so it was to be sold.

I just wondered what I was liable for?

LIZS Tue 07-Mar-17 18:28:00

It would be based on your share (50%?) of the difference in value between when you acquired the property 2001 and when you sell. What are your plans now? The inheritance is a bit of a red herring unless it was deliberately transferred to avoid IHT or liability for care fees. The law has changed since 2001 affecting annual allowances etc so you really need a property solicitor to go through it in detail.

Martin10 Tue 07-Mar-17 22:09:10

So it's just capital gains I need to sort out?

Viviennemary Wed 08-Mar-17 12:12:03

You won't need to pay capital gains until the property is sold. You should really ask your solicitor/accountant to clarify things as that's his job and then you'll know for certain what to expect as to the amount of tax you will be liable for.

Viviennemary Wed 08-Mar-17 12:13:30

Shouldn't have said his job. blush And on women's day too.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now