Tax on property, money and shares you inherit

Property

You don’t pay Stamp Duty, Income Tax or Capital Gains Tax on a property you inherit when you inherit it.

You may have to pay Inheritance Tax if the deceased’s estate can’t or doesn’t pay it.

HM Revenue and Customs (HMRC) will contact you if you need to pay.

The rules are different in Scotland.

Selling the property

You don’t pay Capital Gains Tax when you sell your home. You do pay it if you make a profit when you sell a property that isn’t your main home.

If inheriting a property means you own 2 homes, you’ll have to nominate one of them as your main home. You must tell HMRC which property is your main home within 2 years of inheriting the property.

If you don’t tell HMRC and you sell one of the properties, they’ll decide which property was your main home.

Renting out the property

You may have to pay tax on the rental income.

Properties held in trust

Usually if you inherit property held in a trust, you are the ‘beneficiary’ and the trustees are the legal owners and responsible for paying tax on income the trust receives.

You may still have to pay tax on any income you receive from the trust.

Bare trusts

If the trust is a ‘bare trust’ you are both the beneficiary and the legal owner and are responsible for paying tax on income the trust receives.