Question:
In January 2018, I inherited my late mum's house in the Midlands and have now just sold it (August 2018). I never lived in the house, and it was put on the market in February 2018. As my home is in Scotland (which I own), could you tell me if any of the proceeds from the sale would be taxable? The total estate value is less than £175,000, and I am the sole inheritor.
Arthur Weller replies:
When you inherit, the tax rules say that you inherit at the market value at the date of death (probate value). I would imagine (although this needs to be confirmed) that the house has not gone up in value between January 2018 and August 2018. If so, you have not made any capital gain, so none of the sale proceeds will be subject to capital gains tax. Since the total value of the estate is less than £175,000, then assuming that your mother did not make any gifts in the past seven years, there will be no Inheritance tax for you to pay.
In January 2018, I inherited my late mum's house in the Midlands and have now just sold it (August 2018). I never lived in the house, and it was put on the market in February 2018. As my home is in Scotland (which I own), could you tell me if
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