Inheritance Question

pmyoung · 20/01/10 - 17:16

My Grandma recently died and has not made a will. She has just one daughter (my mum) and my grandad passed away a few years ago. She has about 20 to 30k in savings and the house is worth about 100 to 120 k. My question is what happens if my mum sold her house, would she be able to keep all the money or does she have to pay capital gains tax. I know it under the threshold for inheritance tax. Many thanks
Paul

Keefy-boy · 20/01/10 - 17:26

capital gains tax would only be payable on any increase in value of the house between your mother's acquisition and when it was sold. the first £10,000 odd is tax free.

pmyoung · 20/01/10 - 17:27

My grandma bought the house about 38 years ago for about 3000 pounds.

mirandashell · 20/01/10 - 17:28

Did your nan have any other relatives? Or has that been checked already?

Keefy-boy · 20/01/10 - 17:31

pmyoung wrote: »

My grandma bought the house about 38 years ago for about 3000 pounds.

i doesn't matter when she bought it or what it was worth then! it is only the value of the house at her death that is relevant to your question.

[Deleted User] · 20/01/10 - 17:35

Keefy-boy is correct.

More info here:

http://www.property-tax-portal.co.uk/taxquestion48.shtml

pmyoung · 20/01/10 - 17:35

mirandashell wrote: »

Did your nan have any other relatives? Or has that been checked already?

The only other 'blood' relation is her nephew and me and my brother and our kids.

Hey there!

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