Tax on selling a house

muffler · 10-01-2011 1:38pm #1

Apologies if this has been asked before but I have a friend who is looking for a bit of help.

Right, he and his 3 siblings have jointly inherited the house from their late mum and have decided to sell the house and split the proceedings among the 4 of them. The house will probably sell for €100,000 max. so they stand to gain 25k each. Would they be liable for capital gains tax?

Thanks in advance.

nompere · 10-01-2011 2:04pm

It will depend on the probate valuation of the house.

If they sell for more than the probate valuation then there may be a CGT bill, but that will also depend on their personal circumstances.

muffler · 10-01-2011 2:18pm

nompere wrote: »

It will depend on the probate valuation of the house.

If they sell for more than the probate valuation then there may be a CGT bill, but that will also depend on their personal circumstances.

Thanks nompere.

AFAIK the house was valued by the local estate agent (who is also selling it) at 100k and I suspect the actual selling price to be less than that - probably about 90k.

What personal circumstances would affect the payment of capital gains tax?

nompere · 10-01-2011 3:38pm

Personal allowance of €1,270 per annum (which might have been used against other gains) and any losses forward.

Given the figures you quote any CGT seems unlikely.

Pandoras Twist · 10-01-2011 5:31pm

It would still have to be declared though, and the relevant forms filled out. But the annual allowance would cover the tax payable.

Plus, correct me if I'm wrong but they inherit the house at the market value on the date of death, so they only pay tax on any rise in value since the date of death?

Tax on selling a house

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