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[Field Marshal Dr. Opti]

Sometimes called capital gains tax.

Is there any way to avoid paying this if you are not Google, Amazon, Starbucks...etc....etc?

[STEMO]

Ask one of your accountants.

[Field Marshal Dr. Opti]

Ask one of your accountants.

Despite your choice of cars you seem like a  relatively smart chappie. Answer me this....Is capital gains tax payable when the person who dies has only one property, and that property is left to his children?

[STEMO]

That can only be one part of the equation. How much is it worth? Are there any debts secured on it? Do any of the children live or intend to live there?
You really need to take proper, paid, yes paid advice, or you'll only be guessing.....won't you?

[Field Marshal Dr. Opti]

That can only be one part of the equation. How much is it worth? Are there any debts secured on it? Do any of the children live or intend to live there?
You really need to take proper, paid, yes paid advice, or you'll only be guessing.....won't you?

No debt on the property.

Property will be sold.

Nobody will live in the property.

Paid advice costs money so I'm asking you instead.  

[STEMO]

https://www.gov.uk/tax-sell-property/what-you-pay-it-on

[STEMO]

https://www.gov.uk/valuing-estate-of-someone-who-died

[Shackeng]

Depends if the total value exceeds the inheritance tax limit. https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band
 

[Field Marshal Dr. Opti]

Depends if the total value exceeds the inheritance tax limit. https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band
 

Thanks, Mr Shackeng.

I'm aware of the £325,000 inheritance tax limit but with what little I know I think you can be liable for capital gains tax well before this figure.

[Kevin Wood]

CGT comes into play when you sell an asset that has increased in value while in your possession.

Your normal place of residence is exempt.

I don't see how you'd pay it on an inherited property, unless you kept it as a second home after inheriting it and then sold it at a later date.

Inheritance tax might well be payable upon inheriting it, of course, but I don't believe capital gains tax would.

No expert, but that's my understanding.

[Kevin Wood]

Same is probably true on selling shares and investments that have been previously inherited but have then increased in value.

The deceased's estate might be liable for some CGT on those from the period before their death, I suppose.

[Field Marshal Dr. Opti]

It seems that the payment of tax is optional to some but not others.

A fictional or perhaps factual conversation.

Taxman to the representative of Google/Facebook/Starbucks.

"Please take a seat Sir, I feel sure we can come to an amicable accommodation. If you'd rather not pay anything at all that is just fine by HMRC. The choice is your.".

Taxman to you or I.

"Pay up you little shit or we'll cut your balls off"......

[Field Marshal Dr. Opti]

CGT comes into play when you sell an asset that has increased in value while in your possession.

Your normal place of residence is exempt.

I don't see how you'd pay it on an inherited property, unless you kept it as a second home after inheriting it and then sold it at a later date.

Inheritance tax might well be payable upon inheriting it, of course, but I don't believe capital gains tax would.

No expert, but that's my understanding.

Yes....sort of.

It is slowly becoming more clear.

It seems that CGT is payable on the difference between what the property is worth when the person dies, and what the property is worth when the property is sold ( less expenses)

For example. Uncle Percy leaves you a house in his will valued at £200,000........so well below the threshold for Inheritance tax.

The house is sold a year later for £300,000.

Therefore you would be liable for CGT on £100.000 less the tax threshold of £11100.........so £88,900 at either 18% or 28%.

This applies even if the property was Uncle Percy's only home.

[Kevin Wood]

Yes, that's fair enough. It's not uncle Percy's since, when he died, it became yours. It's presumably not your main home, therefore, you are liable for CGT on the appreciation in value that has taken place since you inherited it.

You could have sold it immediately after he died, in which case there would have been no CGT to pay (but the money would have been in the bank, and you'd be paying tax on the interest).

[biggriffin]

Remember the tax man, does not like being, taking for a numbty by jo public, you will do more time for fiddling tax than robbing the same from a bank. Oh and don't even consider trying the customs-n- excise boys, they have more powers than the police