kody Posted September 29, 2016 Report Share Posted September 29, 2016 A mate of mine has inherited a house from someone who had died all paid for Now he is planning to sell it He will have to pay inheritance tax on the house But there is a lot of very valuable contents in house as well Will this be added to the value of the house or not or can he sell contents separate Quote Link to comment Share on other sites More sharing options...
bullet1747 Posted September 29, 2016 Report Share Posted September 29, 2016 Depends how much he gets think its 350 grand Quote Link to comment Share on other sites More sharing options...
walshie Posted September 29, 2016 Report Share Posted September 29, 2016 Add together the cost of the house and the fixtures. anything over £325,000 is liable for 40% tax. Estate agents are normally quite good at not overvaluing it if you tell them what it's for. Quote Link to comment Share on other sites More sharing options...
Kalahari Posted September 29, 2016 Report Share Posted September 29, 2016 Get some professional advice. The inheritance tax should have beeen paid by the estate before distribution of the residue. However even if free from IHT you may be liable to Capital Gains Tax. Get advice the penalties for tax evasion (unless you are apple or google) will make your eyes water. Talk to a tax lawyer, in this case it will be money well spent. David. Quote Link to comment Share on other sites More sharing options...
flynny Posted September 29, 2016 Report Share Posted September 29, 2016 (edited) Sell the contents separately,( if he's inherited these as well) as long as it ain't the £20 ,000 kitchen etc etc, lol Fixtures and fittings will be valued with the house, whatever is in it can be sold before hand, It's the houses value,( fixtures and fittings) not the house and contents that estate agents value at, Flynny Edited September 29, 2016 by flynny Quote Link to comment Share on other sites More sharing options...
button Posted September 29, 2016 Report Share Posted September 29, 2016 Get some professional advice. The inheritance tax should have beeen paid by the estate before distribution of the residue. However even if free from IHT you may be liable to Capital Gains Tax. Get advice the penalties for tax evasion (unless you are apple or google) will make your eyes water. Talk to a tax lawyer, in this case it will be money well spent. David. How would CGT be applicable in the situation described? Quote Link to comment Share on other sites More sharing options...
Jaymo Posted September 29, 2016 Report Share Posted September 29, 2016 If IHT has been applied then 'No' further taxation should be applied--- even HMRC aren't that greedy Quote Link to comment Share on other sites More sharing options...
cuffy Posted September 29, 2016 Report Share Posted September 29, 2016 If IHT has been applied then 'No' further taxation should be applied--- even HMRC aren't that greedy Hmrc are a bunch of greedy bullies . I wouldn't put anything past them . Inadequate bean counters . Quote Link to comment Share on other sites More sharing options...
Kalahari Posted September 29, 2016 Report Share Posted September 29, 2016 Just check that it hasn't risen in value since it was valued for probate. David. Quote Link to comment Share on other sites More sharing options...
Vince Green Posted September 29, 2016 Report Share Posted September 29, 2016 Just check that it hasn't risen in value since it was valued for probate. David. If its valued low for probate and then sold for a higher amount CGT would be payable on the difference because (in the most literal sense) it would be a capital gain. Unless it were the principal residence of the seller Quote Link to comment Share on other sites More sharing options...
dodeer Posted September 29, 2016 Report Share Posted September 29, 2016 Sell contents for cash and tell no one. Quote Link to comment Share on other sites More sharing options...
Adge Cutler Posted September 29, 2016 Report Share Posted September 29, 2016 The Inheritance tax will be calculated on the value of the estate including any contents over £500 in value. Normally a probate valuation is carried out to calculate the estate value. At least this is what happened in our case two years ago when my spinster Aunt died. Take advice from a solicitor who specialises in probate. Quote Link to comment Share on other sites More sharing options...
Mungler Posted September 29, 2016 Report Share Posted September 29, 2016 Sell contents for cash and tell no one. 😀 Check the deceased's home contents insurance policies for the last 6 years to make sure there's nothing on there that will need to be ponyed up. But seriously, if it's a valuable house and it's all landed in his lap, tell him not to be a tightwad and just get a brief to do it all and legit. Indeed, if the person who dies was previously married and the spouse's IHT allowance wasn't used up (and invariably it's not if he/she left everything to her spouse) then it can be rolled over Quote Link to comment Share on other sites More sharing options...
bullet1747 Posted September 30, 2016 Report Share Posted September 30, 2016 I was in the same boat , me and the wife was given a house over the price by wife's mother on the condition I built a granny flat for her , I did this while she lived in her other house , all I'll say is get a good solicitor , we didn't have to pay any and it's worth nearly 400 k ,some will say bull but it's true Quote Link to comment Share on other sites More sharing options...
Twistedsanity Posted September 30, 2016 Report Share Posted September 30, 2016 What mungler said, if they were married and the one who died first left everything to the spouse then the tax is rolled over so they can leave £650k before IHT is applied Quote Link to comment Share on other sites More sharing options...
AVB Posted September 30, 2016 Report Share Posted September 30, 2016 I was in the same boat , me and the wife was given a house over the price by wife's mother on the condition I built a granny flat for her , I did this while she lived in her other house , all I'll say is get a good solicitor , we didn't have to pay any and it's worth nearly 400 k ,some will say bull but it's true What's that got to do with IHT? Sounds like you were given the property as a gift while your MIL was alive. So assuming MIL lives for 7 year no IHT payable when she dies. Once your MIL moves out though, and assuming it isn't your primary residence, you will be liable to CGT though once you sell it won't you? Quote Link to comment Share on other sites More sharing options...
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