Tax on property, money and shares you inherit
Property
You do not pay Stamp Duty, Income Tax or Capital Gains Tax immediately if you inherit a property.
HM Revenue and Customs (HMRC) will contact you if you owe any Inheritance Tax.
The rules are different in Scotland.
Selling the property
You do not pay Capital Gains Tax when you sell your home. You will pay it if you make a profit when you sell a property that is not your main home.
If inheriting a property means you own 2 properties, you must tell HMRC which property is your main home within 2 years.
If you do not tell HMRC which of your properties is your main home, HMRC will decide if a property was your main home when you sell it.
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.