If you’ve recently inherited a property in the UK, you may be wondering what your options are when it comes to selling the property. In this article, we’ll explore the ins and outs of selling an inherited property in the UK, including what you need to know about taxes and legal requirements.
First things first: Can you sell an inherited property right away in the UK? The short answer is yes, you can sell an inherited property as soon as you inherit it. However, there are a few things to keep in mind.
Assuming you’ve inherited the property outright (i.e. you weren’t left a share of the property with other beneficiaries), you’ll have full legal ownership of the property as soon as probate is granted. Probate is the process of verifying the validity of a will and the executor of the will is responsible for administering the estate, including distributing any property or assets to the beneficiaries. Here at sell my house swiftly we help and guide clients to sell their inherited houses.
Once probate has been granted and you’ve become the legal owner of the inherited property, you’re free to do with it as you please. This means you can sell it right away if you choose to.
However, before you rush to put the property on the market, there are a few things you should consider.
Tax implications of selling an inherited property
One important factor to keep in mind when selling an inherited property in the UK is the tax implications. Inheritance tax is usually paid by the estate of the deceased, and any tax due must be paid before the property can be transferred to the new owner.
Assuming the estate has already paid any inheritance tax due, the next tax consideration when selling an inherited property is capital gains tax (CGT). CGT is a tax on the profit you make when you sell an asset (in this case, the inherited property). If you sell the property for more than it was worth when you inherited it, you may be liable to pay CGT on the difference.
However, there are some important exceptions to CGT when it comes to inherited property. Firstly, if you sell the property within the first two years of inheriting it, you may be exempt from CGT. This is known as the “no gain, no loss” rule. Secondly, if you decide to live in the inherited property as your main residence (i.e. it becomes your “principal private residence”), you may be able to claim relief on any CGT owed when you eventually sell the property.
Legal considerations when selling an inherited property
Another important consideration when selling an inherited property is the legal requirements you’ll need to follow. Assuming you’ve inherited the property outright and you’re the sole owner, you’ll need to make sure you have all the necessary documentation in place before you can sell the property.
This may include:
- The original will or grant of probate
- Any documents related to the transfer of ownership of the property
- Any other legal paperwork related to the property (e.g. planning permission or building regulation certificates)
You’ll also need to ensure that any outstanding debts or mortgages on the property are paid off before you can sell it. If there are any outstanding debts on the property, the executor of the will is responsible for paying them off before distributing any assets to the beneficiaries. Further details and explanation in selling Inherited property click here.
Benefits of selling an inherited property
So, now that we’ve covered the legal and tax implications of selling an inherited property in the UK, what are the benefits of doing so?
Firstly, selling an inherited property can provide you with a significant lump sum of money that you can use for a variety of purposes. Whether you use the money to invest in other properties, pay off debts, or simply enjoy life, having a large sum of money at your disposal can be a major advantage.