UK Inherited Property Could Face £120k CGT Hit

New analysis regarding UK property tax reforms suggests that inherited homes could face a significant capital gains tax (CGT) increase. The proposed changes involve scrapping the current CGT uplift on death, a rule that currently resets the tax base value of a property to its market value at the time of the owner’s passing.

Under these potential reforms, families selling inherited property may encounter tax bills approaching £120,000. This substantial liability would arise because the tax calculation would shift to include the appreciation in value that occurred during the original owner’s lifetime, rather than only the growth since inheritance.

The analysis highlights the direct financial impact of removing this specific tax relief on the UK housing market. While the reforms are currently proposed, the data indicates that without the uplift, the cost of selling inherited assets could rise dramatically for many households across the country.