UK Resident, NZ inheritance question

[SRichardson]

Hi there,
I am a UK Resident, but Mum, Dad & sister are all NZ residents. My sister lives with my Mum & Dad and will continue to do so.

We are trying to work out what happens to their estate (eg. their house) when they pass away.

I understand that, were we to sell the property following their deaths and send my share of the proceeds from NZ to the UK, that that would not attract any inheritance tax.

However, the complication is that my sister would like to stay in my Mum & Dad's house, potentially for years after their deaths.

Are there any UK tax implications to holding onto the house for several years after their deaths? Or will it still not attract any inheritance tax no matter how long my sister holds on to the house?

Cheers
Sam

[pawncob]

Assuning you own it jointly with your sister, you'll be liable for tax on any income received and CGT on any sale in the future. Any IHT matters will be dealt with in NZ.

[SRichardson]

Yes we own it jointly. By income do you mean if we were to rent it out?

And regarding CGT, between which dates would you compare the house valuations to work it out?

[SRichardson]

For example would the dates be from my parents death and the ultimate date of house sale? So I'd only pay CGT on the amount the house increases in value over that time, not the whole house value presumably?

[pawncob]

CGT base cost would be probate valuation. Gain would be sale price less base cost.
If not let, then no income.

[SRichardson]

I forgot to mention, the house is in a trust, does that affect any CGT payable? Or are the rules the same, and if so, would the starting valuation be the probate valuation or when the trust is wound down?