Capital Gains Tax as an Executor...need a simple explanation

Curlylady

Hello, having sold my late mothers home, I now have final distributions but my solicitor mentions in final letter that as this was a second property which I legally owned, as an executor on behalf of me and my brothers, there may be Capital gains tax implications. She advises I speak to an accountant if I have concerns. Naturally I do, however after a gruelling year of sorting the estate etc, all I want is a very simple explanation not really want to employ an accountant. I have looked on the Gov website, and put details in on the online calculator but am not convinced, as it says I owe 0. Just looking for a very simple way of understanding it. Advice appreciated.

getmore4less

Simple explanation is did the assets in the estate gain value since the death.

Gets more complicated if they did.

If there was no IHT the value used at death may need checking.

Add some substance to your post like the value notified on the IHT forms and the net from sale.

Did you assent before sale or sell within the estate.

Yorkshireman99

Curlylady wrote: »

Hello, having sold my late mothers home, I now have final distributions but my solicitor mentions in final letter that as this was a second property which I legally owned, as an executor on behalf of me and my brothers, there may be Capital gains tax implications. She advises I speak to an accountant if I have concerns. Naturally I do, however after a gruelling year of sorting the estate etc, all I want is a very simple explanation not really want to employ an accountant. I have looked on the Gov website, and put details in on the online calculator but am not convinced, as it says I owe 0. Just looking for a very simple way of understanding it. Advice appreciated.

You should take your solicitor's advice. In particular you need to have had a professional valuations of the properties involved done by a RICS or equivalent. So called "Valuations" by estate agents will not do.

Curlylady

Ok thanks. Probate was completed March 2016, estate agent valued property and sum (don't wish to disclose this information) was used on forms, solicitors confirmed no IHT was due on the estate. Property was sold & completed this week for £5000 more than the probate amount but sold at the actual market price.

Keep_pedalling

£5000 is below the tax free allowance so there would be none to pay.

Yorkshireman99

In which case there is no CGT on the estate. However there may be on your property you sold. That depends on what the value was when you bought or inherited it.

nom_de_plume

Yorkshireman99 wrote: »

In which case there is no CGT on the estate. However there may be on your property you sold. That depends on what the value was when you bought or inherited it.

I read the property sold be the OP as being one their late mother's property. The reference is that it was owned by the OP as Executor.

getmore4less

As there was no IHT the value declared will not have been ascertained by HMRC so they can go back and adjust the base for CGT.


Over 12 months and only a £5k gain may depending on actual value declared at DOD and the price rises in the area attract the attention of HMRC if the sold price does not match.

You may still need to do a CGT return even if you calculate no tax to pay.

Yorkshireman99

getmore4less wrote: »

As there was no IHT the value declared will not have been ascertained by HMRC so they can go back and adjust the base for CGT.


Over 12 months and only a £5k gain may depending on actual value declared at DOD and the price rises in the area attract the attention of HMRC if the sold price does not match.

You may still need to do a CGT return even if you calculate no tax to pay.

Which is why the OP would be wise to follow the solicitor's adviceand get paid for professional advice.

Curlylady

Thanks everyone, I did call an accountant today, he explained and confirmed the annual allowance, property value at death and amount sold, falls well within our tax allowance, in fact below, he said there will be nothing to pay. I now hope case closed. Thanks again ☺