CGT on inherited property

Hi My mother is beneficiary of my late sisters property from December 2018. Value at time of Probate was 160K. Purchase price was £157K when bought at peak of property prices. The condition of the property deteriorated as it was not lived in due to family sicknesses. Work work carried out to replaster walls, renovate bathroom which was mouldy and fit a new kitchen and front door amounting to around 25K. Value of property is around Son has mortgage and now around 192K as the property does not benefit from an extension like surrounding properties and prices dropping. Mum is in receipt of Universal Credit. Is CGT pay for anything and would gifting property to son have any implications or benefit entitlement issues?

Hi Nam123,

Capital gains tax may be payable from disposing of the property or gifting to son on the difference between the probate value and the disposal value.  
Repalcement kitchens and bathrooms generally do not qualify for capital allowances.  
Have a look a the guidance at:- 
 Tax when you sell property

Thank you.

How would one contest bathrooms refurbished and kitchens that were in a state of disrepair plus holes in ceiling therfore needing plastering as without that the value of the property would be valued at considerably less and make it negative equity.

Hi,

The value at the time of inheritance would be based on the state of the property to take into account the work needed done. The cost of replacing the kitchen and bathroom are allowable costs to be deducted when working out the gain. You can see guidance and associated links here:

CG15150P - Capital Gains manual: introduction and computation: computation: expenditure: contents

Thank you.