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Answered in 14 minutes by:
9/26/2012
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 16,712
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
VerifiedHi.
There will be no Capital Gains Tax to pay unless the property is sold for more than £10,600 more than its value when your mother died and it became the property of her estate. The value at the time of your mother's death is the new cost for CGT purposes.
If your mother's estate plus the value of non-exempt gifts made in the seven years before she died was in excess of £325,000 when she died, then the excess will be charged to Inheritance Tax at 40%. That is, unless she was widowed and her late husband did not use all of his Inheritance Tax nil-rate band in which case your late mother's estate will have a nil-rate IHT band of up to £650,000 depending on the percentage of your late father's nil-rate band that was unused. Read about transferring a nil-rate IHT band here.
Let me know if you have any further queries.
There will be no Capital Gains Tax to pay unless the property is sold for more than £10,600 more than its value when your mother died and it became the property of her estate. The value at the time of your mother's death is the new cost for CGT purposes.
If your mother's estate plus the value of non-exempt gifts made in the seven years before she died was in excess of £325,000 when she died, then the excess will be charged to Inheritance Tax at 40%. That is, unless she was widowed and her late husband did not use all of his Inheritance Tax nil-rate band in which case your late mother's estate will have a nil-rate IHT band of up to £650,000 depending on the percentage of your late father's nil-rate band that was unused. Read about transferring a nil-rate IHT band here.
Let me know if you have any further queries.
The property was sold after your mother died so it's not part of her taxes. Because the disposal proceeds were more than £42,400, the disposal should strictly be disclosed in an estate tax return for 2012/13 assuming it is sold by 5 April 2013. You can attach a calculation of the gain or loss to the tax return.
Your mother's last tax return will only cover the period 6 April 2011 to 4 Novermber 2011.
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 16,712
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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