Radfordman
pfm Member
It was a lot of money, but not much compared with the things at stake, and he was efficient and got a good result.
Legal question(s) for the forum
- Thread starter Radfordman
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It was a lot of money, but not much compared with the things at stake, and he was efficient and got a good result.
kensalriser
pfm Member
If there's no dispute you probably don't need a lawyer.
Divvy up the executor's account according to the terms of the will and close it.
Register the property in your name at the Land Registry (if you used a conveyancer for the purchase this should have been done, if not you may want to hire a conveyancing solicitor to effect it now).
As above, there may be CGT for your sister on the subsequent sale.
Divvy up the executor's account according to the terms of the will and close it.
Register the property in your name at the Land Registry (if you used a conveyancer for the purchase this should have been done, if not you may want to hire a conveyancing solicitor to effect it now).
As above, there may be CGT for your sister on the subsequent sale.
Mike Reed
pfm Member
Yes, but it's only half the increase in the property value, and CGT exemption in 2019 was nearly (or at) £12K, so if the value had risen by £24K or so, or your sister had other cap. gains in that tax year, CGT would have been due, I guess.
Radfordman
pfm Member
Thank you, I shouldn't really say this but my sister has acted in not a very nice manner, I'm not too bothered if she has some CGT to pay.
Radfordman
pfm Member
Thank you, most helpful, the house has been registered in my name at Land Registry, my solicitor did that for me. My sister's CGT is a problem for her.
hifinutt
hifinutt
just an aside we just had to pay a fine because we only paid cgt on a house we sold ,in 6 weeks , should have been paid in 30 days !!! hmrc are merciless . needless to say we had to pay full cgt on the `market value ` not the substantially less sum we sold it for to a family member !! happy days eh ... i bet loads of people dont know you have to pat cgt in 30 days of a sale !!!
Radfordman
pfm Member
That is a bit tough. Capital gains and inheritance tax should be abolished, we pay enough taxes without them.
Rug Doc
pfm Member
Ouch.
I don’t understand why you had to pay CGT on the market value, rather than the price you sold it for.. no, actually reading it again I do, apologies. You could have inherited a house worth 500k yet sold it to your son for £100k.
Double ouch.
MichaelC
pfm Member
On reading the above it looks to me as if the house had not been distributed from the estate prior to the sale of the half share to the OP. It is therefore the estate that has the liability to the CGT (CGT being due on (half the uplift in value from half the probate value of the house minus one annual exemption)).
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Mike Reed
pfm Member
This surprised me too, though this probably kicks in only on inheritances and outright gifts (?), as otherwise it'd be nearly all profit. Normally, market value would be sale value and liability would be minus purchase price/costs less exemption, I'd've thought.
This cap. gains disclosure/payment within 30 days is an absolute travesty; hardly enough time to sort things out let alone ascertain the correct procedure/forms etc. for so doing. From one year plus (on normal annual returns) to one month, not that this has been widely advertised, if at all. I guess this means one has to be able to calculate the liability, be on-line and reasonably savvy and have the patience and fortitude to hang on for anything from 30 to 55 minutes to get through. Fiscal rant over.
Dozey
Air guitar member
The cgt 30 days is surprising as usually you get to the end of the financial year before having to pay tax. Not a travesty as you will know how much money you are going to get for a house well in advance.
The market value is so you don't avoid cgt by selling your 1 million pound second home to a family member for 100k to avoid cgt.
The market value is so you don't avoid cgt by selling your 1 million pound second home to a family member for 100k to avoid cgt.
Radfordman
pfm Member
Thanks to all that have contributed, I think I know better now where I stand in respect to my situation.
hifinutt
hifinutt
yes house cost 120k cost about 40k to renovate . value was 180k at time of sale sold for 140k . so had to pay cgt on that 180 full market value even though sold at discount to family member . rather like paying tax on that christmas present you gave to mum last year !! . we did get accountant in to work out all the costs and deductions so it wasnt too bad cgt .
The change to 30 days is ridiculous, you often won't get an accountant or solicitor to reply to an email in that.
Also the CGT rate used to be dependent on other income which many of us don't decide until April 5th.