Taxation

Cillab

If you sell a house you inherited from your parents when they died. And you never lived in it since do you pay cgt on the whole sale price or the difference in its value on inheriting it.

barneystinson

Cillab wrote: »

If you sell a house you inherited from your parents when they died. And you never lived in it since do you pay cgt on the whole sale price or the difference in its value on inheriting it.

On the difference between its market value when you acquired it and the price it was sold for (less allowable costs of acquisition / disposal).

Clue is in the name capital GAINS tax...

Cillab

barneystinson wrote: »

On the difference between its market value when you acquired it and the price it was sold for (less allowable costs of acquisition / disposal).

Clue is in the name capital GAINS tax...

Thanks i was told because he origionally had not personally paid for it .therefore it wold be a third of sold ammount . So its only the gained value ammount since aquiring it.

barneystinson

Cillab wrote: »

Thanks i was told because he origionally had not personally paid for it .therefore it wold be a third of sold ammount . So its only the gained value ammount since aquiring it.

For CGT purposes he acquired it at its market value.

Likewise for inheritance tax purposes.