This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

CGT on inherited part ownership

TrickyDicky
Posts:1
Joined:Wed May 03, 2017 5:29 pm
CGT on inherited part ownership

Postby TrickyDicky » Wed May 03, 2017 5:55 pm

Hello. My wife and I have inherited an interest in a property co-owned (as tenants in common) by our late daughter and her boyfriend. Our share of the equity on a £160000 property amounts to £8500. Is this figure subject to CGT? Also, boyfriend wants to share some of the life insurance payout with us by way of paying £40000 for our interest. Presumably, this is subject to CGT? How to minimise CGT? I work full time (salary £24k), wife does not work.

SteLacca
Posts:448
Joined:Fri Aug 07, 2015 2:17 pm

Re: CGT on inherited part ownership

Postby SteLacca » Thu May 04, 2017 12:54 pm

When did you inherit the property, what was probate value, have you made improvements to the property?

When you say your share is £8,500 I assume you mean £85,000.

The level of your income only affects the CGT tax rate, and doesn't have a huge bearing on CGT mitigation.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: CGT on inherited part ownership

Postby maths » Thu May 04, 2017 2:21 pm

Not sure I follow.

Did your daughter and boyfriend own the property 50/50?

You suggest boyfriend wishes to purchase your daughter's interest from you/wife but will use some of the life insurance proceeds from a policy took out I presime on her life. Who was the beneficiary of the policy? Was it placed in trust for boyfriend's benefit?

Did your daughter leave a will?


Return to “Capital Gains Tax, CGT”