Brain frazzled!

[Foucauld]

Can someone solve this riddle!

My uncle left me his house in 2004 - valued at £225000.

However, it was held in trust until my other uncle either died or moved out. He sadly passed away in 2017. Before any works were completed on it, it was valued at £463000.

I spent roughly £30000 on it installing central heating, kitchen, and electrics etc and then rented it out.

The house is now worth £750000.

However, I now need to sell. My question is...

Do I calculate CGT from when he died in 2004? Or from when I gained full possession of it in 2017?

Nobody seems to know.

[AGoodman]

Who did you ask?

If Uncle2 had a right to live in the house under your Uncle1's will, Uncle2 would likely have had an IPDI (immediate post death interest).

This means that:

- it would have been in Uncle2's estate for inheritance tax when he died (but could still have been tax free if he was a widower and other his assets were worth less than about £190k.
- the value is rebased for capital gains tax on uncle2's death.

The effect is that your acquisition value is £463k plus £30,000 (assuming all the works counted as improvements). Gain of circa £257k.

[Foucauld]

Thank you so much.

Basically, the house wasn't transferred to uncle2 upon the death of uncle1. The land registry show that it was placed into the solicitors name so that I couldn't sell up until uncle2 moved or passed away. All inheritance tax was paid by my uncle1.

(Obviously, the house is now in my name)

Does any of what I said make a difference?