Selling an inhertied house

[liger79]

Hi,

My folks were left a house in a will about 2years ago. They paid the full inheritence tax but didn't want to move into it as it required a lot of work to bring it up to modern standards. Anyway they put it up for sale and the bottom fell out of the market before it sold.

Looking at the back of form CA11, point 1 states that in the event of a sale of property with 3 years of the date of inheritence, the taxable value of inheritence may be subject to readjustment.

Does this mean that they can claim back some of the tax they paid or is it a one way system, only readjusted if sale price higher??


Value of property at time of gift 400K

Tax paid approx 68K

House sold for 260K


Thanks

 

[Ned_ie]

Typically it would only be readjusted if it was felt that the incorrect value at the time of inheritance was used.