selling inherited house.

A

Aineyoung

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Hi, I inherited my parents house x 5 years ago, It was valued at 170,000 at probate, ( very low valuation ...for other reasons at the time)
It market value is approx 240, 000. ...or less. I had been renting it , I was torn as to whether keep renting /sell etc.. but would really like now to pay off my own mortgage, debts etc

My cousin from overseas is currently temporarily staying there rent free with his family as a means of keeping it warm, maintained etc.

They are now in a position to purchase the house.

Whats is the best way for us both to do this deal, in the most tax efficient way, and without estate agents fees if possible. To whom should I seek best advice.

Many thanks
A
 
You can certainly sell the house without an estate agent - their participation in the transaction is not a legal requirement - but you will need a valuation of some kind for the sale, as will your cousin if they are hoping to borrow against the property.

As the house is not your PPR, you will be liable for CGT on the difference between the valuation for probate and the value at sale. Have you registered the rentals with the PRTB and declared the income for tax? Your cousin may have a tax liability if it emerges they have been living there tax [EDIT] rent-free.

You will need solicitors, one each, for the conveyancing.
 
Last edited:
+1 to mathepac's post.

To OP- you both need your own solicitors.

You'll have a CGT liability and best to take accountancy advice on that- to make sure you can get whatever deductions you may be entitled to.

Hand this over to the solicitor and , all going well, the sale will be done and dusted by Easter.

mf
 
mathepac said:
Your cousin may have a tax liability if it emerges they have been living there tax free.
Click to expand...
At the risk of being at the receiving end of some posters ire, I would not be mentioning this in the greater scheme of things to your accountant, just say you stopped renting it out while you were waiting to see what you were doing. It was a temp thing to allow someone keep it safe from decay and vandalism.
 
Thanks guys for your replies and advice. its helpful , will seek solicitor advice next. Before my cousin moved in I had paid tax on a small rental income from another family who stayed there. And I had gone through an accountant to sort this out.

My other query was if didn't sell this house, what would the tax implications have been for my Daughter, (lives abroad) if she inherited the 2 houses from me? both houses would have combined current value of of 600, 000..
 
She would pay CAT at 33% for any amount above the threshold which is around 300k.
 
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