Need Help Filling CGT...

PoGee

Please can someone help? I don't now what I'm doing. I fill out a yearly self assessment which is normally fairly easy but my siblings and I sold a property belonging to a deceased relative.
It increased in value during probate due to infighting. The property was valued at 130k at the start but sold at 150k (figures rounded up/down). There are 3 who inherited this. What would the 'disposal proceeds' (Box 4) be? Do I deduct solicitor fees in Box 5? I know the Capital gain is £6667 as my share but don't know if I'm meant to put down as that or the total gain - £20k.

Jeremy535897

You only declare your share. If your share of the sale proceeds was no more than £49,200, and you sold no other chargeable assets, and your share of the gain was no more than £12,300, you don't actually need to declare anything at all. If your share of the sale proceeds (before deducting selling costs) was over £49,200, your gain is computed as your share of the proceeds (box 4), less your share of selling costs plus your share of the market value at the date of your deceased relative (box 5). You would need to check box 53 as the base cost is a valuation (which can be challenged by HMRC unless the estate was subject to inheritance tax and the value has been agreed with HMRC).

If there was any tax due, you would have to report and pay the tax within 30 days of completion.

https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

PoGee

Thanks for your reply Jeremy535897. I do a tax return each year as I have a let property. Solicitor said to note it in self assessment but as the gain was less than £12 300, which meant no tax payable, he said in an email that I didn't need to notify HMRC within the 30 days. The property was sold in October 2020. Should I have filled out CGT form within 30 days even if no capital gains tax liable?
I have no other capital gains, so toying with not filling out at all.

PoGee

Re the £49200 - the property was sold for £153k. That makes my proceeds £51k, which means I do need to fill out cgt form? Fees such as legal and marketing came to £4500 split 3 ways, £1300 each.
My confusion lies with what the 'proceeds' are - what the property was sold for split 3 ways or the gain, which is £7700. It would have been a lot more simple had it been sold in a timely fashion, meaning no gain in value during probate.

Jeremy535897

As your share of proceeds exceeds £49,200,. declare your share (not the full amount), as I said earlier.

If the probate value was wildly wrong, in theory you could have a tax bill. If it is correct within about £15,000, there should be no tax, unless you had other gains.

PoGee

Many thanks, I get it now.

JGB1955

What was the probate value for the property?  If the property was sold by the executors, the estate is liable for any CGT on any INCREASE in value between death and sale.....not the beneficiaries.

[Deleted User]

PoGee said:

Re the £49200 - the property was sold for £153k. That makes my proceeds £51k, which means I do need to fill out cgt form? Fees such as legal and marketing came to £4500 split 3 ways, £1300 each.
My confusion lies with what the 'proceeds' are - what the property was sold for split 3 ways or the gain, which is £7700. It would have been a lot more simple had it been sold in a timely fashion, meaning no gain in value during probate.

To clarify - each enter : Proceeds £51000 less selling costs £1500 (not £1300) less ‘purchase’ cost 43333. Although JCB has made a very good point.

Jeremy535897

[Deleted User] said:

PoGee said:

Re the £49200 - the property was sold for £153k. That makes my proceeds £51k, which means I do need to fill out cgt form? Fees such as legal and marketing came to £4500 split 3 ways, £1300 each.
My confusion lies with what the 'proceeds' are - what the property was sold for split 3 ways or the gain, which is £7700. It would have been a lot more simple had it been sold in a timely fashion, meaning no gain in value during probate.

To clarify - each enter : Proceeds £51000 less selling costs £1500 (not £1300) less ‘purchase’ cost 43333. Although JCB has made a very good point.

OP said "my siblings and I sold...". Given the figures, and assuming no other gains of the legatees, it would be very surprising if the executors chose to sell and incur a tax liability. But anything is possible.

PoGee

It was put in our names as it took longer than 3 years for estate to be finalised. I think the estate gets a cgt allowance for 3 years only, so solicitor advised this, as it would 'reduce cgt bill to zero'.
I know the amounts to fill in boxes 4 and 5 but don't know after that. I thought I would need to fill box 9 with the gain of £7700 but that box has a minus sign at the start??
What's the realtime transaction referred to in box 11? Do I fill the gain of 7700 in that box or box 9?

[Deleted User]

The minus sign should be shaded by you if there is a loss - in your case you won’t be doing that. The real-time in box 11 referred to gains reported under the 30 day rule - again not appropriate for you. 

Your gain is £6167 - not £7700. Box 4 is 51000. Box 5 is 44833. Box 9 is 6167.

Have a read here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1003753/SA108-Notes-2021_English.pdf