Tax to pay on inherited property
By Shaun Adams SUBSCRIBE TO NEWSLETTER
Capital Gains Tax to pay on inherited property?
The good news is that the estate doesn't have to pay any Capital Gains Tax on the property or assets that weren't sold (also known as 'unrealised gains') before the person died.
But, if the property or asset is sold during probate and its value rose since the person died, there is usually Capital Gains Tax to pay.
This tax is calculated on how much the increase is since the person's death. You do not pay this on the first £11,000 profit per person.
Beneficiaries inherit the assets at their probate value.
This means that when they sell or give the asset away, they will pay Capital Gains Tax on the increase in value from when the person died to when it was sold or given away.