What tax are we liable for on home we inherited where our mother had a ‘right of residence’?

Inheriting a property where someone else holds a 'right of residence' can lead to unexpected tax liabilities for both the inheritor and the person with the right to live there. The exact nature and extent of these tax obligations hinge on the specific legal status and arrangements governing the property and its occupants.

For the inheritor, the property forms part of their taxable estate, and its value may be subject to inheritance tax. Simultaneously, the existence of a right of residence can complicate the valuation and disposal of the property. The person exercising the right of residence might also face tax implications, particularly if they derive any benefit or income from the property beyond their right to occupy it.

Navigating these complex tax scenarios requires careful consideration of property law, inheritance law, and relevant tax legislation. It is often advisable for both parties involved to seek professional legal and tax advice to fully understand their liabilities and ensure compliance with all applicable regulations. This ensures that the inheritance process is managed smoothly and tax implications are addressed appropriately.