Can Inheritance tax relief and letting relief both be used when selling

Can Inheritance tax relief and letting relief...

Didn't find your answer?

Hi I'm hoping someone can help

A new client has just inherited her parents house, she had taken out a personal loan secured against her own house to pay off the rest her parents mortgage. which she is still paying at the moment she is looking into letting the house or selling it
Just to confirm things in my own mind
Q1 seen as though her parents mortgage was all paid off, she would not be able to claim the interest she is paying on the loan or would she ?
Q2 . If she did sell it without having any PPR would she still be able to claim letting relief ?

Many thanks in advance

Replies (2)

Please login or register to join the discussion.

By johngroganjga
03rd Feb 2014 08:29

There can be no letting relief without PPR relief, and there can be no PPR relief unless the house is her main residence at some point after she acquired it.  Any capital gain will be based only on the increase in value since she inherited it.  Her CGT base cost is the probate value in the estate of the parent who left it to her.

I will leave others to answer the interest relief question.

 

Thanks (0)
Replying to MGD:
avatar
By jaskhan
03rd Feb 2014 18:53

That's just what I thought many thanks

Thanks (0)