Inherited Property with Sitting Tennants

[Dedcon]

I inherited a property from my father in 1988. It had sitting Tennants who refused to enter into a tenancy agreement with me and they've lived there ever since paying a peppercorn rent. As they were old and didn't have much money, I decided to let them live there in peace. They've recently died and I now want to sell the property. Am I liable for CTG bearing in mind I have had no opportunity to live there or sell the place at market value? If I am, how do I find out the value of it when my father died? I have no idea and it is not on the paperwork I have. Thank you

[pawncob]

Yes you're liable to CGT.

If there's no probate value you'll have to ask a local valuer to provide an opinion of value at the date of death. This may need to be negotiated with the D.V. at a later date when the CGT comp is submitted.

[Dedcon]

Thank you pawn cob. I was under the impression that because the house was left with tenants who I could not get rid of or put up their rent to any degree even after taking them to a rent tribunal, that the CTG would only apply from the date they vacated until the date of sale. Had we been able to, we'd have moved there years ago as they paid £36 a week, while we struggled with a huge mortgage.

From what your saying, do I have to pay CTG from date of death until date of sale?

[King_Maker]

Yes, the value in 1988 is required, if not already done for Probate.

It is likely to be relatively low with sitting tenants.

[Dedcon]

I'm grateful for the replies, even if it wasn't really the answer I wanted.
I've found that the property was worth £85000 when I inherited it in 1986. It's in my wife and my names and it's now valued at £300000. Do you have any idea how much the CGT would be and as it will be a lot, how I can mitigate it. We've never lived in it and it needs lots of updating.

[King_Maker]

The maximum Gain is £215,000.

The maximum CGT is £60,200.

I would recommend that you and your obtain professional advice suitable to your specific circumstances.

[Dedcon]

Thanks King_Maker