Is there a probate fee when you sell a house if there was a will?

Thrugelmir

You are correct my error. There's an allowance for the year of death and the two following years. When dealing with my late parents estates both were done and dusted within the same tax year. 

BooJewels

Thanks for the clarification @Thrugelmir - that really helps us - not that the CGT would come to much, less than £500 - but nice not to have to pay it at all.  We accepted an offer this afternoon that is £20k over the probate value - so 2 years allowance means that we're well inside the CGT threshold.

p00hsticks

BooJewels said:

Thanks for the clarification @Thrugelmir - that really helps us - not that the CGT would come to much, less than £500 - but nice not to have to pay it at all.  We accepted an offer this afternoon that is £20k over the probate value - so 2 years allowance means that we're well inside the CGT threshold.

Don't forget that you can deduct selling costs (estate agent and solicitors fees) if there wasn;t already an (estimated) allowance made for them when applying for probate

BooJewels

Thanks @p00hsticks - I have already deducted conveyancing and EA fees from my back of an envelope calcs for CGT- one years allowance would give us tax to pay on a couple of grand-ish, the second year of allowance means that we're well inside it.  Not massive differences in this instance, but better in my pocket than HMG's.

EasySolution

While the estate potentially has three years worth of CGT allowances, you can only claim an allowance in that year if you have made a gain.  You cannot carry it forward.  So if you are selling a property then you can only claim the allowance applicable in the tax year that you are selling it.

BooJewels

Thanks @EasySolution - can you point to a reference where these details are outlined please, as I've struggled finding one with specifics.  The Government calculator only references carrying a loss forward.

EasySolution

CG18000 - Introduction and computation: annual exempt amount: introduction: Annual exempt amount: general

HMRC's Capital Gains tax manual

BooJewels

Thanks @EasySolution - going up to the contents (i.e. from the resulting page searching that phrase turned up) and following links to what looked like the answer, to the page below, says otherwise - this page says representatives administering are allowed the allowance for the year of death and 2 years following:

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg30600

Looks like I'll need to appoint an accountant anyway.  

p00hsticks

BooJewels said:

Thanks @EasySolution - going up to the contents (i.e. from the resulting page searching that phrase turned up) and following links to what looked like the answer, to the page below, says otherwise - this page says representatives administering are allowed the allowance for the year of death and 2 years following:

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg30600

Looks like I'll need to appoint an accountant anyway.  

I think you are misinterpreting what you are reading. If the estate sells the property within three years of the death then it has a capital gains tax allowance. But you can't add the allowances together - you don't get double the allowance for selling in the second year than you would have if selling in the first.

BooJewels

Thanks @p00hsticks I'm not the only one getting confused then - others in the thread have said the same.  When the time comes - perhaps just in the New Year - I shall seek professional guidance, or speak to HMRC directly.