Capital Gains Tax

Batters61

Hopefully a simple question, but I cant find the answer.

4 of us have inherited a house, two of us have a third share and two one sixth. My question is if we sell for more than probate we will be liable for CGT. So if we sell for £100k more than probate we would get £12,300 allowance. Is the allowance for each person or is it a single amount for the transaction? 

naedanger

It you each receive a share in the house, and you subsequently sell the house, then each of you have a CGT allowance that you can use against the capital gain on your share of the house since the deceased's date of the death.

If the house is sold during the estate's administration (with the beneficiaries receiving their inheritance in cash) then the estate has to pay the CGT and it only gets one allowance (per tax year) to cover all the estate's capital gains.

Keep_pedalling

If you sell it for £100k above the probate value HMRC may challenge the original valuation if it meant IHT was avoided or reduced.

If the house is being sold by the executors on behalf of the estate then there is only one allowance available. To claim your individual allowances ownership would have to be transferred to claim individual allowances. 

Batters61

Thanks KP. The solicitor has suggested transferring ownership, but didn't feel that the probate valuation was too low. It was over a year ago and was subject of two different estates, it's very complicated.