Inheritance/capital gains tax confused

[Slightlyworriedagain]

I'm selling my late mum's home. It's been on the market for 8 months. It will be 2 years next July since my mum died. If it's sells after next July, do I have to pay capital gains tax on top of inheritance tax?

Any experts out there?

If it's sold for a higher value than it was valued at the date your mum died, yes CGT is due.

Is it still part of the estate? If you have inherited it and sold cgt would be payable on the difference in value but there are time and annual exemptions to take into account.

Not unless the house has already been transferred to you. It took 2 years to sell my mums house and in that time rose in price by £15k. As it remained in her name with the land registry until it was sold, no CGT was payable.

That's the very basic answer. But it depends what stage of the process you're on with it being transferred etc. Your solicitor should advise.

I can't help I'm afraid but following as this is a question I ought to ask our solicitors about my mum's house.

This is not correct, leaving a property in the deceased’s name at the Land Registry has no impact on whether CGT is payable. Possibly you didn’t owe CGT for another reason - you can deduct the costs of selling and also money you’ve spent on the property?

Very unlikely. Is the property actually yours? Has the estate now settled? Even if the estate has settled and the property is in your name, the fact that it has been on the market for 8 months would indicate that it hasn’t increased in value since it became yours. I think you are worrying unnecessarily.

This will help

https://www.gov.uk/tax-property-money-shares-you-inherit/property#:~:text=You%20do%20not%20pay%20Capital,main%20home%20within%202%20years.

Also this

https://community.hmrc.gov.uk/customerforums/cgt/3d34af05-76eb-ee11-a81c-002248c67511

The house is still in her name. It will sell for less than probate value unless some miracle happens.

In that case OP then there will be no CGT to pay.

Has probate been granted though?

If not, then the property is now the property of the estate and the cash proceeds from the sale of the house will replace the estimated value they have currently included in the probate calculations (and a refund for any IHT then overpaid can be reclaimed)

No CGT should be payable assuming it was her principal place of residence.

If, however, probate has been granted, although you say the property is in her name still, the property would be owned by the beneficiary of the will that inherited it. That said, no CGT should be payable if it sells for less than probate value. You might, however, want to see if the probate value can be amended anyway, so as to reduce any IHT that is payable.

There is a warning in the IHT/CGT manuals that some unscrupulous people might have overstated the property value for IHT purposes, especially where no IHT is payable, then sold the property later for a "loss", to avoid CGT and create a capital loss that they can carry forward against future gains. Make sure you have evidence of the property valuations at the point of probate if it remains unchanged for IHT purposes.

Beware that a CGT return might need to be submitted to HMRC within 60 days of any sale, whether there is CGT to pay or not. The conveyancing solicitor should assist with this.

I would recommend, if you aren't already, getting a probate specialist solicitor involved in handling the probate.

Probate was granted months ago. I had 2 probate valuations (both said the same)