Capital Gains Tax and Selling Family Home

NewCenturion

Hi there,

I'm one of three children who will inherit the family home (both parents now deceased) after the probate journey is completed. No issues - three way split of the property worth circa 330k which I think leaves us all well below the inheritance tax threshold. My query is when we then move to sell on the house, which is the plan, are we subject to to CGT on that transaction?
Appreciate any guidance
Thanks

relax carry on

NewCenturion wrote: »

Hi there,

I'm one of three children who will inherit the family home (both parents now deceased) after the probate journey is completed. No issues - three way split of the property worth circa 330k which I think leaves us all well below the inheritance tax threshold. My query is when we then move to sell on the house, which is the plan, are we subject to to CGT on that transaction?
Appreciate any guidance
Thanks

Yes if the property has increased in value and you have a gain when you sell it

After my mother died we inherited a house in Dublin. From 1997 when she died the house prices went up and when we sold in 2015 we had to pay tax on the capital gain based on 2015 value when it was sold.

I had to pay more than other children since I stopped living in it in 2002 so it was not my principal residence. I was hit with tax on capital gain from 2002 to 2015 which in Dublin can be big.
The last sister left in 2010 so she had less of a capital gain since the tax was based on the increase in the value of the asset between 2010 and 2015 compared to my 2002 to 2015.

My advisor saved me a few quid as follows:
My father died years ago when I was very young. So I actually inherited a portion of the house back in the 1970's. This meant that I had actually owned part of it already so I had less to gain when the mother died. I saved about 6k which paid the solicitors fee. It was something like that anyway. He had to dig up my fathers PPS to make it work but it did in the end.

NewCenturion

Thanks Fratello, call all get v confusing v quickly.

Something similar, the father died (intestate) in 2005, all three children had moved out of the home by then just leaving our mother in the house. Nothing done re probate in intervening years. Mam sadly died earlier this year prompting children to start probate process. House was entirely in father's name.

House prices in 2005 would have been quite a bit higher than they are now I suspect, so am I right to assume that we will be liable for CGT on sale of house at current sale value?

Hope I'm making sense.