When you inherit a property from a deceased loved one, you inherit it at the market value of the house at the time of death.

If you keep the inherited property as well as your own main home you will have two years to tell HM Revenue & Customs (HMRC) which of the two homes is your main home.

The non-main home will then become liable for capital gains tax payment. It’s a good idea to nominate your main home as the one that you think will gain the most value.

If you sell the inherited house without having moved into it, the capital gains tax will be based on the difference in value between the inherited value and the sale value, less selling costs.