Inheritance Tax

[Lucifer Box]

Plus that would be disallowable for IHT purposes if you continued to live in the house without paying the new owner a commercial rent.

[ASB]

They actually own half the house each, so the surviving sister inherits only half, to add to the half they already own. The inheritance is £400k. If the survivor sells the whole house to pay the inheritance tax bill, though, they might have to pay CGT.

Small detail but they only actually own half the house each if they are tenants in common. (Difference between tenants in common and joint tenants however is only really important in the case of marriage or civil partnership - not likely for sister!).

If the house was the surviving sisters PPR then CGT would not be payable on the sale. In any event it is the estate selling the house so CGT is not payable anyway.

[ChimpMaster]

Plus that would be disallowable for IHT purposes if you continued to live in the house without paying the new owner a commercial rent.

OK so sell the house and give your children the cash to buy a new house for themselves, and then go live with them!

[Ardesco]

Lovely idea but if you cop it in 7 years all the money you have given them is liable for IHT and you also have to be careful, some of the ungrateful little scroats will then kick you out the house, laugh at you and spend all your hard earned cash while you live on the streets....

[oraclesmith]

Small detail but they only actually own half the house each if they are tenants in common. (Difference between tenants in common and joint tenants however is only really important in the case of marriage or civil partnership - not likely for sister!).

If the house was the surviving sisters PPR then CGT would not be payable on the sale. In any event it is the estate selling the house so CGT is not payable anyway.

I don't actually know what's on their deeds. I just heard that they owned half each on the radio. They may be wrong.

[xoggoth]

Yeh really fecking irritating. Not as rich as you of course (who is?) but would end paying lots for stupid chavs if I pop my clogs tomorrow. See that thing on front page of the DT today? Average income for working couple with no kids has gone down 4% since 1997, non-working couple with kids up by 15%. Says everything about Britain.

PS Ah yes, I see you did as you mention the article in a thread further down (but not that particular bit)