CGT on inherited property

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    CGT on inherited property

    Just wondering how CGT is calculated. I inherited a property bought by my parents in the 80s. The value has multiplied by about 5. Do I pay CGT when I sell it based on:
    the difference in price between purchase and eventual sale price, or
    the difference in price between value at time of inheritance and value when eventually sold.
    Thanks. I should say I have no intention of selling now and am doing it up to rent out.

    #2
    The inheritance is a CGT event - but if the property was your parent's residence, there would have been no CGT to pay.
    Your "gain" would start at the value agreed when you inherited, from the point you became the owner.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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      #3
      Thanks JP so it would start from the surveyors valuation for IHT and the calculation would use the difference between that value and the value at eventual sale time?

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        #4
        Yes - spot on.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          It should be the same value declared on the probate before else HMRC might potentially query it. You might want to dig that out in preparation.

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            #6
            Thank you both.

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