Got to sell my dad's house since he passed away in December.

I can't be bothered to trawl through loads of official websites so, does anyone know:

***At what level does Capital Gains Tax kick in? And can we avoid it if the house proceeds are split three ways?

***At what level does Stamp Duty kick in?

Thanks for any response/advice

Alcazar

 

Not sure CG will be an issue assuming your Father's main home, IHT maybe. Has the estate been wound up?

Stamp duty is 1% over 150k, 3% over 250k, 5% over 500k but paid by the purchaser.

 

stamp duty won't be an issue though as its only payable on buying a house.

 

It would appear that inheritance tax will be due on any amount over £285,000 @ 40%

The estate is only split up after paying the tax, so how it is split is not relevant.

HM Revenue & Customs: HMRC Inheritance Tax: Customer Guide

 

I think it'll be inheritance tax too, rather than CGT. 40% hit above your nil rate band. The estate pays that. What you have is an asset that you recieved at market value now, so if you dispose of it CGT shouldn't be an issue.

*disclaimer* it's been 10 years since I looked at this in detail.

Stamp is payable by buyers, but still relevant if you're selling. Not a bill for you though.

 

If you're selling it on behalf of his estate, the estate may be liable for IHT (not CGT). If it was transferred from the estate into your hands, then CGT could be payable on the gain between the transfer value & sale proceeds realised.

D (subject to my ability to remember tax a "few" years ago)

 

Really chaps my ***.

so your father passes away after paying tax (i assume) all his life and with whats left of his earnings after tax buys a house, you then sell the house and lets say its worth 400K so with you doing nothing more than selling the house on the government make:

46K in In heritance tax then 12K stamp duty, so 58K for doing bugger all

 

It's up to people to deal with their finances in order to minimise any taxation upon death. Not bothering to do so is no excuse for whining about a future tax bill on funds you never earnt yourself in the first place.

 

Sorry to disappoint folk, but this is the North of England: his house will be lucky to realise £140,000, for a 5-bed semi.

Alcazar

 

If there are no other assets then the estate has no IHT liability. Stamp duty is paid by the buyer, so you have no stamp duty liability. You would only have to pay CGT if you inherit your third and hold it for a while. If you sell the house now at 140k and split the proceeds no-one will have to pay a penny

 

Pensioners need to be an expert on everything these days, including the taxation of their own morbidity! Stinks and it is very hard to discuss and bring up amongst families. Gordon's property boom death dividend

D