Re: capital gains tax?

> In June my nan passed away and she left a little money and her house. The
> only problem is in 1990 she insisted on signing it over to my uncle (it
> wasn't to avoid nursing fees as although she was ill we were looking into
> selling the house for her to go into a nursing home when she died). If I
> understand it correctly although the full estate is under the total for
> inheritance tax, we would be liable for 40% tax anyway on the increase
> since 1990. If this is the case how do we find out how much the house was
> worth in 1990? Also, my father and uncle are looking into renting the
> house out if they have to pay too much tax to sell it. Would they be able
> to put the income in both names? My uncle is a higher rate tax payer than
> my father and it would be unfair for my father to have to pay a higher
> rate
> of tax on his share of any profits. Also, if they do rent and then my
> uncle left the house in his will to my cousins, my brother and myself
> would
> we be liable for the capital gains tax (although this is unlikely as my
> father and uncle are only in their 50's).


Did she leave a will? Who are the executors if she did, or her closest
relative who might apply for letters of administration? Whoever is going to
administer the estate is almost certainly going to need paid for
professional advice because what has been done complicates matters. Likewise
your uncle. Did your uncle declare the gift to the Inland Revenue? If your
Nan gifted the house before her death then she could not dispose of it in
her will as she no longer owned it. I strongly advise the people concerned
to seek the advice of a solicitor because if they don't then they could end
up in all sorts of difficulty. It will cost money but this will be small
compared with what it will cost if you get it wrong! It certainly is not a
situation where you can rely on anything but general advice from this or any
other NG.

Peter Crosland


.

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