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Where Taxpayers and Advisers Meet

TMRA rented propery

kanrent
Posts: 59
Joined: Tue Dec 16, 2014 8:20 am

TMRA rented propery

Postby kanrent » Sat Jul 30, 2016 5:50 am

Hi can anyone advise me
I have 1 property that i lived in for 20 years as my main and only home i then rented out the whole of the property for 15 years. whilst living abroad in rented accomadation
My daughter will inherit it when i die
will the property still qualify for/ as a main residence allowance (TMRA) in the future when my daughter inherits the property

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Re: TMRA rented propery

Postby Peter D » Sat Jul 30, 2016 7:34 am

The house will be transferred to your daughter at it's open market value at your DoD. There will be no CGT, that will pass away with you. The property value will of course form part of your estate for IHT purposes. Regards Peter

kanrent
Posts: 59
Joined: Tue Dec 16, 2014 8:20 am

Re: TMRA rented propery

Postby kanrent » Sat Jul 30, 2016 9:07 am

thank you peter
just one thing example if my total IHT estate is worth 425,000 pounds on my death in 2018 and transfered to my daughter what would the IHT tax bill be.
as it has been rented out would TMRA still be applicable with a 425,000 threshold or would the 325,000 apply

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Re: TMRA rented propery

Postby Peter D » Sat Jul 30, 2016 9:37 am

In 2018 the IHT threshold will rise to £450,000 if the property passes to a direct decendant. Prior to April 5 2018 it will be £425,000.
Regards Peter

kanrent
Posts: 59
Joined: Tue Dec 16, 2014 8:20 am

Re: TMRA rented propery

Postby kanrent » Sat Jul 30, 2016 9:40 am

will that still apply if the property has been rented out ?
thanks

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Re: TMRA rented propery

Postby Peter D » Sat Jul 30, 2016 9:54 am



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