Future sale of inherited house

[Jimjobjim]

Hi folks

I inherited my late aunts house, I had been living in the house for the past two years so not long enough to gain dwelling house relief. The tax bill for the house will be settled and paid to Revenue in January. The tax bill was based on valuation at date of death.

My question is that if I do repair works on the house and sold it for example in two years time at an increased value to valuation at date of death can revenue look for more money from me on increased value?

Thank you

 

[jpd]

if it is your principal private residence (PPR) then no tax will be due on any gain in the value over the inheritance value

If it is not your PPR then, yes, you will be liable to CGT on any gains since you inherited the property. Any money spent on repairs or maintenance is not taken into account when calculating the gain

 

[Jimjobjim]

if it is your principal private residence (PPR) then no tax will be due on any gain in the value over the inheritance value

If it is not your PPR then, yes, you will be liable to CGT on any gains since you inherited the property. Any money spent on repairs or maintenance is not taken into account when calculating the gain

thanks for reply, yes this is my only home, thank you for clarifying this

 

[john luc]

if it is your principal private residence (PPR) then no tax will be due on any gain in the value over the inheritance value

If it is not your PPR then, yes, you will be liable to CGT on any gains since you inherited the property. Any money spent on repairs or maintenance is not taken into account when calculating the gain

Does this apply across the board, if it was not their principle home and they spent money to improve the property thus increasing its value, are they not allow to offset the cost of improvement in a future sale against any CGT bill.

 

[Gordon Gekko]

There’s just confusion in relation to the language that’s being used.

Repairs and maintenance wouldn’t be allowable but improvements/enhancements would be.

 

[torblednam]

Does this apply across the board, if it was not their principle home and they spent money to improve the property thus increasing its value, are they not allow to offset the cost of improvement in a future sale against any CGT bill.

It's got nothing to do with whether the house was the owner's PPR or not, it's because repairs and maintenance are not ever allowable for CGT. Improvements are. There's an important distinction between the two categories.

 

[john luc]

what then would be classed as one or the other. For example, a new kitchen or a new heating system. Curious to know as I have a house that's not my PPR and it was i need of a total renovation. I not selling so it is not anything urgent but I had to replace everything from kitchens to bathrooms to heating and just about everything you could imagine. I spent a lot and the house now would have a much higher value.