Inheritance planning question
Posted: Mon May 13, 2024 10:20 am
Can’t help thinking inheritance planning is a bit of a dark topic emotionally but I suppose it makes perfect sense financially.
Firstly, could I just confirm my understanding of inheritance.
When my mother dies, my brother and I will inherit the house. We won’t need to pay inheritance tax because the house isn’t worth enough when both the U.K. and Japan’s inheritance laws kick in. I already know this. But if I understand correctly, when we sell the house, capital gains tax for me in Japan will be calculated from when mum bought the house to the point when we sell it. Is that right?
Secondly, my question is, what happens in the following case? My mother passes on, the house goes to her husband (not my father). Then he passes and the house comes to my brother and I. Will the capital gains tax then be calculated from the point when my mum bought the house or the point when her husband got the house after her passing?
Thirdly, if we get the house and then decide to rent it out rather than selling it, of course the income will be taxed as income. But if we do that for ten years and then sell the house, what’s the “start point” of the capital gains tax calculation?
Thanks!
Firstly, could I just confirm my understanding of inheritance.
When my mother dies, my brother and I will inherit the house. We won’t need to pay inheritance tax because the house isn’t worth enough when both the U.K. and Japan’s inheritance laws kick in. I already know this. But if I understand correctly, when we sell the house, capital gains tax for me in Japan will be calculated from when mum bought the house to the point when we sell it. Is that right?
Secondly, my question is, what happens in the following case? My mother passes on, the house goes to her husband (not my father). Then he passes and the house comes to my brother and I. Will the capital gains tax then be calculated from the point when my mum bought the house or the point when her husband got the house after her passing?
Thirdly, if we get the house and then decide to rent it out rather than selling it, of course the income will be taxed as income. But if we do that for ten years and then sell the house, what’s the “start point” of the capital gains tax calculation?
Thanks!