Crosswords1 min ago
Personal Finance
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Can someone advise what taxes are payable on inheritied Ex. Council house. Value estimated about �90K . Three " Full Blood"recipients involved
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None at the time of receipt.
Unless the deceased had a lot of other assets �90K is well below the inheritance tax threshold.
The recipients may at a later date be liable to capital gains tax if they sell it at a sufficient profit. They will in the meantime be liable to Council Tax unless they let it out and the tenant pays it - and for income tax on the rent.
Unless the deceased had a lot of other assets �90K is well below the inheritance tax threshold.
The recipients may at a later date be liable to capital gains tax if they sell it at a sufficient profit. They will in the meantime be liable to Council Tax unless they let it out and the tenant pays it - and for income tax on the rent.
When calculating out Capital gains tax - normally you can deduct the initial value from the sale price as well as the cost of any home improvements as well as a deduction which will vary depending on how long the property has been held.
However, I think that in this case, it is the difference between the value when it was passed to the 3 receipients that would be deducted from the actual sale price. This when spilt 3 ways would be a capital gain.
I would suspect that in this case, the gain would normally come below the individuals CGT allowance. Whether there would be any tax to pay would depend on any other capital gains made in the year by those individuals and the amount of the gain made on the sale.
However, I think that in this case, it is the difference between the value when it was passed to the 3 receipients that would be deducted from the actual sale price. This when spilt 3 ways would be a capital gain.
I would suspect that in this case, the gain would normally come below the individuals CGT allowance. Whether there would be any tax to pay would depend on any other capital gains made in the year by those individuals and the amount of the gain made on the sale.
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