Capital Gains Tax on Inherited Property

My wife and I will inherit mil's house on her death, her total estate will be well below the IHT limit, so no inheritance tax to pay. I know that we will be liable for CGT on any increase in value from the probate vaulation to the final sale value (less selling costs and CGT allowance).
It may be that estate agents will recommend some significant improvements are made (complete new kitchen, rewiring, redecoration etc) to increase it's value and make it easier to sell.
Can these improvement costs be offset against the CGT?
If not, it may be more cost effective just to sell the house, without the improvements, at a lower price, I'll need to work out the respective numbers.
Reply to
Davidm
AIUI: if you sell it within a reasonable time (1 year perhaps) you can get the actual sale price used in a revised probate valuation and there will t hen be no CGT.
Also, when you have it valued for probate, make sure the valuer knows you w ould like as high a valuation as possible. There is always a certain leeway in these things and the valuer may well assume that you want a low valuati on unless you explain the situation.
Robert
Robert
Reply to
RobertL

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