Postby AGoodman » Thu Nov 28, 2019 2:57 pm
IHT may be payable as a result of the death, but that will be independent of whether the property is sold or not.
IHT may be payable but if the property is given "free of tax", the tax would be paid from the residue. You refer to the property being owned as beneficial joint tenants. In that case you wouldn't expect a legacy of his share as it passes automatically outside of the will (as opposed to beneficial tenants in common). However, it is still common to see a reference to the property share not bearing its IHT, which may be what you mean.
Either way, the base cost of that 50% share for CGT will have been uplifted to the market value at death.
The tax on the remaining half share, always held by the seller, will be as I said below but the gain will be reduced proportionately for any time it was her main residence and potentially by e.g. lettings relief.