Capital Gains Tax on Sale of Property ?

onesixfive

I'm an only child.
Mum died recently (dad died years ago), she left a simple will leaving all to me. Total value of estate (including property), is under inheritance tax level.
Probate has been submitted (it was sent early June, long queue apparently (8+ weeks), per solicitors). 
In the meantime property is being marketed with an aim to complete sale on receipt of probate.
Once property is sold, will I pay any capital gains tax - or any other taxes ??

poppystar

Any liability for capital gains tax would be on increase between probate value (the one used on the IHT form) and sale value. If the house isn’t in your name it would be the estate that would be liable but as sole beneficiary that makes no real difference. There is also an annual cgt allowance before it becomes payable, so assuming you have nothing else in the year to pay cgt on then the increase in value would have to be greater than the allowance of £12300 before there is any liability. 

JGB1955

poppystar said:

Any liability for capital gains tax would be on increase between probate value (the one used on the IHT form) and sale value. If the house isn’t in your name it would be the estate that would be liable but as sole beneficiary that makes no real difference. There is also an annual cgt allowance before it becomes payable, so assuming you have nothing else in the year to pay cgt on then the increase in value would have to be greater than the allowance of £12300 before there is any liability. 

I may be wrong but was led to believe that the 'estate' does not have a personal CGT allowance (it certainly doesn't have an income tax allowance), although beneficiaries do.....

EDIT - Forget that... apparently estates in administration DO have a CGT allowance.  I'll leave this here, in case someone comes along with the same quandary. 
See Capital Gains Tax when administering an estate | Longmores Solicitors

onesixfive

As sole beneficiary to the estate, would that £12,300 allowance be mine?

JGB1955

onesixfive said:

As sole beneficiary to the estate, would that £12,300 allowance be mine?

Yes, it would.  Make sure you're not expecting any other capital gains though....

onesixfive

The only other thing we'd be selling may be our own home. Using some of the proceeds of mum's house (£160k?) & our savings & getting something a bit better (£200k ?)
Then we will sell our own home (£100k ??)  to replenish & increase our savings.

I gave up work 2 years ago to care for mum before her death & only have a small private pension (I'm 60) & won't get state pension for several years - so need the savings. My husband is 69 - retired.

poppystar

onesixfive said:

The only other thing we'd be selling may be our own home. Using some of the proceeds of mum's house (£160k?) & our savings & getting something a bit better (£200k ?)
Then we will sell our own home (£100k ??)  to replenish & increase our savings.

I gave up work 2 years ago to care for mum before her death & only have a small private pension (I'm 60) & won't get state pension for several years - so need the savings. My husband is 69 - retired.

Selling your own home would be exempt from capital gains so no problem there. Hope you find a nice new home.