Is there anyone on here who can please give me advice on Inheritance tax and Capital Gains tax?

[HuevosRancheros]

Posting this in Legal and Chat, as not sure where best to ask...

I am unfortunately in the position that both my parents are rapidly getting iller, and may not be around for long :(

I know that Inheritance tax exists, but can't get to the bottom of how much has to be paid, and when.....my main concern is that I (am an only child) will have to come up with a large amount of cash to pay the tax before their house is sold..... we have no savings!! Is this the case?

Also, my mum owns a house that was left to her by her father, I am under the impression that I would have to pay Capital Gains tax on this as well as inheritance tax? So, same question, when and how much?

Thank you so much if you can help. It is bad enough coping with their increasing frailty and illness, without worrying about what will happen 'after'.

You can't get any advice you can rely on here, or on any other open forum, but here is some information that will help you work out how much of a problem this is likely to be.

Firstly Capital Gains Tax will not be due if your mother retains ownership of the flat until her death. On her death if the flat transfers to her husband there will be no Inheritance Tax due.

Following the death of the second spouse, IHT will only be due if the combined estate is worth more than £650,000 (unless any of the first spouse's threshold has already been used e.g. if you inherit her flat on her earlier death).

If the flat is transferred to you or anyone else and is not used as that person's Principal Private Residence, they may be liable for CGT when they sell it. But if the flat is sold by the executors so that the proceeds become part of the estate there is no CGT due. The same applies to your parent's home.

i've posted a reply in chat

For a relatively small fee I would get an accountant - from my limited knowledge - CGT would only be paid on a property after a sale and it is the difference between the bought price (or price when you get it) and sale and you get a £10k allowance per year, so if you have a partner get it in both names asap.. If you are given property and the inheritance tax can't be paid out of the rest of the `estate' i.e. any cash reserves you can then sell the house and pay the tax out of the sale after the sale. So don't worry - you will not have to pay anything you don't have.
Sorry to hear your parents are not well.