Inheritance tax before 6.4.2020 resisdent band

[rmim]

Transfer of a 50% beneficial interest of a property which has never been mother's only or main residence means a CGT charge will arise on any capital gain made.

Thanks for the reply maths.

I forgot to say that I have always lived in the second house rent free. I have always taken a tenant that I put down as rent a room on my tax form.

The electric and gas bill are in my name and DD from my account.
The internet bill is in my name and DD from my account.
The council tax in still in my dads name but the DD was from my account for 5 plus years.
All other bills are from my account DD, but im not sure if I changed the names over.

Does that make a difference for capital gains tax? we were planning to transfer the whole thing over or a part of it to be under the IT threshold.

This is a small semi-detached my parents have owned for 27 years. Mortgage free for quite a few years - to have to now pay what could be 40,000 IT bill seems like another mortgage.

I saw we had the house valued 3 years ago from an estate agent my mums places could be around 650,000 and the second place 450,000. I built an extension on my mums place and converted the loft recently, wonder how much that will change the value?

Im guessing I have to somehow reduce the value the by 200,000 to be safe. I was hoping a simple transfer could be done but now you mention CG.

[rmim]

The person who helped them do the will was a man who came to the house - I see his profession is Will Writer under his signature - you would have thought he would know what he is doing?

You would, but that could be a dangerous assumption to make.

At some point I might have to contact him but that still does not help me with my IT problem.

[rmim]

https://mindatrest.co.uk/blog/how-to-tell-if-property-is-owned-as-tenants-in-common/

Look for the restriction in Section B described in the above link. If the restriction is there, its a tenancy in common and your father can leave his share by will.

The lack of a restriction does not always mean it is a joint tenancy. Some solicitors may prepare a document to "sever" the joint tenancy (turning it into a tenancy in common) but not register the change, just keep a copy of the document. That doesn't make the severance any less effective.

The solicitor who prepared the will should know if they severed the joint tenancy.

If it's a joint tenancy, the whole property passes to the survivor automatically. The will is pretty irrelevant.

Thanks for the reply AGoodman -

Well the register extract part B does not have the restriction.
So there is no why I will be able to find anything in my dads paper work.
I really dont want to call up the solicitors if I dont have to - but Im currently trying to fill in the online probate thing - I have now come to the question 'How was this owned - joint tenancy/tenants in common'

Now that you have said this how should I proceed?

Thanks

[rmim]

so I'm trying to fill Inheritance Tax estate report on gov.uk.

I'm at the question how was this land owned.

It then says

You can find out from the Land Registry how a property, building or land was owned. -- Which I think I have done by downloading the 3pounds file -- from that all we can tell is that it's probably joint tenants.

But as AGoodman has said there might be a document at the solicitors that we dont know about.

I just want to get this part of the paper work done and worry about the other Inheritance tax stuff later preferably without having to go and see a solicitor.

Can I just put down Joint tenancy and try and carry on? Would it make a huge difference if it were wrong (I believe the tax bill would be the same, nil). The solicitors dont seem to have an email or web site. Their name has 'probate limited' in it, as they specialise in it they must have got it right? I really dont want to phone them, if they will even pick up.

[rmim]

As for the value of the houses can I just use the 3 year old figures or adjust them a little or get an online value as I will not be able to get anyone in at the moment with the lockdown, as if anything is passing to mum there is no tax for her to pay no matter what the value, so the values dont have be spot on at this stage? - (if my mother passes away then values of the houses would obviously have to be very accurate.)

My dad has one joint account with my mum.

He told us he has a halifax that might have 3000. but what if it's not right, can a banks tell us the amount?

And he has another bank account that I used to log in for him. I have not logged since he passed away. Am I allowed to? To see the balance? I already used the tell us once service Im not sure if that freezes accounts.

Thanks

[rmim]

I had to call them in the end. They were in!

My dad was given the relevant forms to server the joint tenancy. I guess he forgot.

They said the gift would fail.

From what I understood: A deed of variation was suggested as HMRC would think the gift went through anyway as they have to look at my dads will at some point. This means part of his NRB would be used up leaving me with a huge tax bill should my mother die.

I find it very bizzar that HMRC could think I have half a house on my name if never happened but best not to take that risk.

Hopefully this will be sorted out soon.

The you very much AGoodman for pointing this out, something that would never have been picked up till it was too late.

[rmim]

Hi All – Im still stuck with this problem.

From what I understood the solicitor suggested a deed of variation. [a little confused over this as we are not actually trying to vary the Will, but follow it. If I were to guess, I would have thought some way of doing a retrospective severance of the joint tenancy but I don’t know if something like that exists?]

To now complicate matters further and this is why I’m looking for an alternate route, is that there is a sub clause that states if the gift fails to me an alternative is the grandkids. Well the gift is failing (due to the joint tenancy) –
I have been told that the grandkids now have to sign even though nowhere in the Will would they have inherited anything unless the gift failed [my understanding of the gift failing would be if I died before my father – but I have been told a gift can fail for other reason like bankruptcy]. The grandkids are not 18 yet, we don’t want further delays waiting for a signature from them for something that does not concern them directly as I’m still alive.

I already started the diy-probate online. I had to stop at the point where it asked if the house was joint tenancy or tenancy in common. What if I carry on and put joint tenancy and show my mother inherits the half of the house and not me? (not follow that part of the Will as we cant).

Thanks