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CGT on an inherited property

(11 Posts)
sarimillie Wed 15-May-13 17:52:54

I hope someone can help with this. I inherited my parent's house ten years ago, and paid inheritance tax on their estate. Ten years on, I am selling the house. I haven't lived there or rented it out in the interim. Does anyone know if there will be CGT payable on it, and, if so, how it would be calculated?

Crutchlow35 Wed 15-May-13 17:56:34

Yes. For the 10 years you have rented it. There should have been a valuation on death which is effectively your purchase price.

Crutchlow35 Wed 15-May-13 17:58:38

It would therefore be

Sale price, less purchase price, less any improvements, less any reliefs.

vj32 Wed 15-May-13 19:22:35

I would get some professional advice as there are some easy ways to reduce the amount of CGT you would be liable for, and there are a lot of expenses you can claim that you may not have thought of.

Talkinpeace Wed 15-May-13 20:19:09

40% of net taxable gain
gain = sale price
less selling fees (all of them, EA, solicitors, cleaning etc)
less probate value
less annual CGT allowance of over £10,000

pop your numbers in here www.hmrc.gov.uk/cgt/property/calc-cgt.htm

Crutchlow35 Wed 15-May-13 21:41:28

you cannot claim cleaning. only capital expenses.

Talkinpeace Wed 15-May-13 21:51:12

crutch
not even the clean to bring the house ready for sale after its not been used since it was inherited/

Crutchlow35 Wed 15-May-13 22:12:13

no. that goes on your tax return as an allowable expense against income.

Talkinpeace Wed 15-May-13 22:19:36

but there is no income on this property : its part of dressing the house for sale as otherwise it will stink after years of out of use

ChablisLover Wed 15-May-13 22:22:39

Is there not deemed occupation for the last 3 years of ownership and the gain pro rated for this?

I wouldn't claim cleaning costs either

sarimillie Wed 15-May-13 23:09:09

Thank you all - very helpful. I'll give that calculator a go and see what it comes up with!

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