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Capital gains tax on a second home after inheriting another

Basil1Basil1 Registered Posts: 3
I wondered if someone could shed some light an issue someone i know is facing up to in not to distant future.
She has just inherited a property from an Aunt and is concerned about her position regarding capital gains on her existing home. She is due to take ownership of the inherited property within the next six months (deeds changed to her name) and wishes to sell her existing home after she takes ownership, Will she be liable for capital gains tax on her existing home once ownership is confirmed on the inherited property as her existing home will be in effect her second home? At this present moment time she has moved into the inherited property. Also just to add there will be a considerable profit on her existing home and she will be liable for a large capital gains bill. Thank you

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Answers

  • Basil1Basil1 Registered Posts: 3
    Thanks for your answer.
    I take it that the capital gains calculation will be made via a solicitor on the selling of that property come the time or is it her responsibility via a self assessment to declare it then?
  • Pian32Pian32 Registered Posts: 189
    I don't know if a solicitor will calculate it or not. It is her responsibility to declare it though just like with any self assessment matter.
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F6- Sitting September 2020
  • Basil1Basil1 Registered Posts: 3
    She's just bothered about making sure she pays any capital gains tax owed and being able to work it out should she be liable. For the time being she is living in the inherited property and is renting out her existing home.
    That will of course be liable for tax under additional income. Will the rental agreement she has set up compromise her PPR status for that home in any way?
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