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Where Taxpayers and Advisers Meet

Inheritance

phil4711
Posts: 7
Joined: Wed Dec 05, 2018 11:37 am

Inheritance

Postby phil4711 » Thu Dec 06, 2018 9:43 am

We plan to sell our home of 35 years and move in with an elderly friend,who has left his property to us in his will.On his death,if we then live in the house for several years,can this now be classed as our main residence,and not be liable for any CGT we we decide to sell it ?

AGoodman
Posts: 567
Joined: Fri May 16, 2014 3:47 pm

Re: Inheritance

Postby AGoodman » Thu Dec 06, 2018 11:09 am

Yes.
You would receive the property at its market value on the date of death so you only need be concerned about the increase in value during your period of ownership anyway. You don't have to live there for several years as you would be an established occupant anyway.

phil4711
Posts: 7
Joined: Wed Dec 05, 2018 11:37 am

Re: Inheritance

Postby phil4711 » Thu Dec 06, 2018 8:37 pm

Thanks for that.Phil.

pawncob
Posts: 4166
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Inheritance

Postby pawncob » Fri Dec 07, 2018 4:51 pm

Tkae note that although you will take the property at probate value, there may be IHT due on it at time of death.
With a pinch of salt take what I say, but don't exceed your RDA

phil4711
Posts: 7
Joined: Wed Dec 05, 2018 11:37 am

Re: Inheritance

Postby phil4711 » Fri Dec 14, 2018 12:01 pm

One further question. Say that the value of the inherited property was £500,000. I then spend £50,000 on a conservatory. If in the future i sell the house for £600,000, can i deduct the cost of the conservatory to reduce my CGT bill?

pawncob
Posts: 4166
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Inheritance

Postby pawncob » Fri Dec 14, 2018 12:12 pm

Yes.
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg15150p
With a pinch of salt take what I say, but don't exceed your RDA


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