Tax on inherited property subsequently sold
Wednesday June 2019
I inherited my late father’s house in March 2018, which I subsequently sold in December the same year. I have never lived in the house. The total value of my father’s estate is less than £175,000. Will I have to pay tax on the proceeds of the sale?
For tax purposes you will inherit the house at the market value at the date your father died – the probate value. If there has been no increase in value between the date of death and the date of sale, there will be no capital gains tax to pay on the disposal of the house.
Since the total value of your father’s estate is less than £175,000, then assuming that he did not make any gifts in the seven years before his death, there will be no inheritance tax payable on the estate.
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