Looking for advise on what happens if I were to sell my half of a property that was Inherited after my mother died in 2019. Probate has been granted on the estate and the IHT has been paid on all the assets however as the house was owned Tenants in Common the other half of the property is still owned by the spouse.
The family members have offered to purchase my share of the house and just trying to work out what the IHT and tax there would be if I were to to sell my share now and not wait for the house to be sold when the other party dies.
For an example lets say the property is worth £900k. I believe there will be a RNRB of £175k (tax year 20/21) that can be used to offset against the tax for our half (as we have used the £325k to offset IHT for probate). In my simple world therefore, I believe there is IHT due on £900k divided by 2 (as I only own half the property) less the £175k offset. So £450k - £175k = £275k of IHT to pay at 40%. Therefore i believe there is £110k of IHT to pay. Am I correct so far?
Assuming I am correct and the family want to purchase my half, they have offered to give me a lump sum of £450k-£110k = £340k. So my question is:
1. Do I have to pay the IHT at the point of sale or is that for them to sort out when the spouse dies
2. Do I have to pay any other tax on the money as the property is valued at the same as probate
What would be my tax implication if I didn't sell and just waited. Yes I know the property can go up or down so things will change and obviously the RNRB and IHT threshold will change in the coming year.
Thanks for any and all advise.