selling inherited house

[cyberhead]

Hi

 

we have inherited my fathers house

I will be recieving the letters of admin next week

My sister wants to keep the house and has agreed to pay me my half of the value ...

 

Due to her not working her partner will be obtaining the mortgage in order to pay me my half ,

the property value is approx 250000 ...So i will be recieving 125000

 

the property is still in my fathers name

 

I will be transferring the deeds to my sister or her partner ,

 

is there any tax implications when we do this or is it basically him sending the funds and then we transfer the deed ..

 

the whole estate value was approx 270000 including the house so we are below the IHT threshold ..

 

any advice appreciated ...

[cyberhead]

anyone ?

[honeybee13]

Hello there.

 

You may need professional advice on this, as there have been no replies. I'm wondering if Capital Gains Tax is a possibility as this isnt your main home.

 

My best, HB

[cyberhead]

Hi honey

 

The house will not have gone up enough in value there is a 10000 threshold for cgt ,my father died in april ,I was thinking more along the lines of someone needing to pay

stamp duty its all a bit confusing tbh ..

[honeybee13]

Hello again.

 

Given that you haven't had any other replies, it's possible that people here don't know the answer. You may need to seek professional advice, which doesn't need to be expensive, if you want to check this out.

 

Or you might try the HMRC helpline.

 

HB

[steampowered]

From reading HMRC's guide it looks like stamp duty would be charged on the amount paid, so will apply if the amount is more than 125k... see http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm#4

[cyberhead]

If the property is acquired under the terms of a will, there's no need to notify HMRC and no SDLT is payable. This applies even if the beneficiary takes on an outstanding mortgage on the property on the date the person died, provided that no other consideration is given.

 

But as her partner is involved in getting mortgage will this still apply I wonder

all very confusing

 

I managed to sort the probate myself thought that was the hard part

[honeybee13]

Hello again.

 

In your place, I would still get expert advice either from HMRC or an appropriate professional, I have to say.

 

If the property is acquired under the terms of a will, there's no need to notify HMRC and no SDLT is payable. This applies even if the beneficiary takes on an outstanding mortgage on the property on the date the person died, provided that no other consideration is given.

 

I'm not sure this applies to the circumstances you're talking about.

 

HB

[Kraken1]

personally, I think professional advice could be beneficial and may save you quite a bit.

[ericsbrother]

the value of the estate is below the IHT threshold so all you have to do is inform the Land Registry of the change in ownership. There is a fee for this but it doesnt attract stamp duty as you havent purchased the property. Your sister's other half may have to pay stamp duty on the half he is buying from you but make it £1 less then £125k and that is duty free. Use a solicitor to make sure the transaction goes ahead smoothly (client account) as mortgage lenders like it that way rather than just handing you a load of cash but dont accept any waffle about needing them to do everything as there is nothing for them to do

[ashmk]

Do it by the book with professional help. These things can become very messy should anyone not agree with something. Better safe than sorry.