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What Taxes Do You Need to Factor in When Selling I

We understand how nerve-racking, complicating and frustrating the whole process of selling a property can be, which is why at Cash Home, we do everything. From the initial research into your property and market price to the valuation and securing that guaranteed highest cash offer, we do the lot. It couldnu2019t get any easier to sell your home for cash than with our fast service.

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What Taxes Do You Need to Factor in When Selling I

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  1. What Taxes Do You Need to Factor in When Selling Inherited Property? There are two taxes that you need to take into consideration when you are looking to sell an inherited property – Capital Gains Tax and Inheritance Tax. Capital Gains Tax – If the inherited property increases in value between the time the owner died and when it sells, Capital Gains Tax may be liable against it. Consider this example to help you understand it better – a property that experienced an increase in value of £20,000 in the time stated above would require CGT to be paid on the gain, minus the £11,3000 Capital Gains Tax allowance. One thing to note is that executors can often qualify for exemption of the full amount while they are going through the administration period, that is, the time that passes while the deceased persons affairs are settled, and probate is granted. This exemption period includes the year of the owner’s death and the next 2 tax years. Inheritance Tax – there has been a lot of mention in the news about inheritance tax over the last decade or so. It is the executor’s responsibility to calculate the amount of inheritance tax they are due to pay the HMRC. As of 2019/2020 the inheritance tax threshold had not changed and was still set as payable at the rate of 40% for estates valued as being more than £325,000. Inheritance tax needs to be paid within the first 6 months following the death of the estate owner. After that time, the HMRC will start charging interest on the tax. The only situation where the estate is not expected to pay inheritance tax is if all of the deceased’s assets were passed on to either their spouse or a charity. We understand how nerve-racking, complicating and frustrating the whole process of selling a property can be, which is why at Cash Home, we do everything. From the initial research into your property and market price to the valuation and securing that guaranteed highest cash offer, we do the lot. It couldn’t get any easier to sell your home for cash than with our fast service.

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