CGT on sale of property

edited 12 November 2021 at 7:19PM in Deaths, Funerals & Probate
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  • Keep_pedallingKeep_pedalling Forumite
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    Hal17 said:
    Thanks everyone, sorry to add to the thread but that was extremely helpful. Appreciate the input.

    I understand that as an executor you have a CGT allowance of £12,300 that you can use to offset against any CGT due?

    Would you know if I have read this correctly? My understanding would be that any Capital gains is taxed at 28%, less the selling expenses and less the CGT allowance of £12,300 to leave the balance that would need to be paid?
    The CGR on estates for residential properties is 28%

    https://www.gov.uk/capital-gains-tax/rates
  • Hal17Hal17 Forumite
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    Thank you for the replies. I did ring the CGT helpline and was kindly told that the rate 28% and also I had the CGT allowance of £12,300 that could be offset against any CGT that may be due. 
  • Annie2326Annie2326 Forumite
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    I too am in a similar situation. I am executer and also one of five beneficiaries following the sale of our family home. Do I have to pay the CGT or do all five of us declare it individually ?
  • Keep_pedallingKeep_pedalling Forumite
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    Annie2326 said:
    I too am in a similar situation. I am executer and also one of five beneficiaries following the sale of our family home. Do I have to pay the CGT or do all five of us declare it individually ?
    If the house was sold from the estate then you should pay the CGT bill from the proceeds before distributing the estate. 
  • edited 16 December 2021 at 10:04PM
    ShezzShezz Forumite
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    edited 16 December 2021 at 10:04PM
    I did CGT online a couple of weeks ago and believe me, if I can do it, anyone can!   

    The solicitor sent me a breakdown of money received, their fees and EA fees.

    Probate value: £350k.  Sold for £375k.  Fees approx. 6k = £1725.25 CGT payable.  Website did the calcs and HMRC wrote to me a couple of days later with ways to pay.  


    Hi,  I so hope you are around or anyone is around to answer my question, I am more or less in the same situation as you was, from tomorrow we have sold my mothers house (as executives)  a difference of £20k higher from probate valuation to sale,   CGT will need to be paid out of the estate on £20k less fees (EA, and Solicitors costs) and ess the allowance,  the  question I have (and it may sound a dumb one),  due to selling the property as executives (3 of us)  CGT will be paid out from the estate (as stated in the will, executives to sell any property to turn it into cash to distribute to the beneficiaries), could you help on letting me know where or how do I do an estate CGT online, or can just one of us sign up and do it as a representative 
  • thegreenonethegreenone Forumite
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    www.gov.uk.capital-gains-tax/report-and-pay-capital-gains-tax
    I hope this works (my mouse pad is not working properly so I couldn't C&P). 

    You need a government gateway User ID but you can create one if you don't have one.  One executor, with the agreement of the others, should report the CGT online and pay when the letter comes through.  If you don't have an Exor bank account the person who signed up can pay and claim the money from the estate. 
  • BooJewelsBooJewels Forumite
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    I'm going to be in the same situation in January and we certainly intended that I'd just pay it, from the estate, from the bank account set up for the estate. 

    It happens to be a current account in my name, purely because it was set up during the first lockdown and my sister and I (only executors and beneficiaries) couldn't be in the same place at the same time to set up an executor account and the bank advised against it anyway, as our estate was very simple.  But the money in it is only estate money and we've left enough in there to cover this - as we've instructed the solicitor to distribute the sale proceeds in the right proportions to each of us individually.

    My big problem is that I've recently been locked out of my Government ID (i.e. it used to work, but won't now) as I don't have a passport or driving licence - so I'm going to have to hope to do it by phone, or printing a form and posting it off.
  • poppystarpoppystar Forumite
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    BooJewels said:
    I'm going to be in the same situation in January and we certainly intended that I'd just pay it, from the estate, from the bank account set up for the estate. 

    It happens to be a current account in my name, purely because it was set up during the first lockdown and my sister and I (only executors and beneficiaries) couldn't be in the same place at the same time to set up an executor account and the bank advised against it anyway, as our estate was very simple.  But the money in it is only estate money and we've left enough in there to cover this - as we've instructed the solicitor to distribute the sale proceeds in the right proportions to each of us individually.

    My big problem is that I've recently been locked out of my Government ID (i.e. it used to work, but won't now) as I don't have a passport or driving licence - so I'm going to have to hope to do it by phone, or printing a form and posting it off.
    FYI - doing this without ID took away five days of my life trying to get them to accept my tax another way! (See my previous thread on this - sorry not sure how to link). If they start passing you around their offices the term you will need is digitally excluded this is the open sesame to getting a paper form. They actually admitted that not only does a print version not exist on the site but they don’t offer it easily to stop people from trying to use paper forms. Once I said digitally excluded - their term not one I made up! - it all went very smoothly ... and slowly as they had a backlog so the time limit is effectively extended. Hope this might help
  • BooJewelsBooJewels Forumite
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    Morning @poppystar and apologies for the delay in responding, but I was at the house this weekend doing the last of the clearing before the house clearance people go in and I'd got logged out of MSE on my tablet.

    Thanks for the heads up, that's very much appreciated.  I have also been trying to sort out my state pension, as I'm short about 6 years of NI and encountered the same problem there - but thankfully, they were very receptive to it and incredibly helpful and it all got sorted over the phone.- they just gave me a reference number and their bank details, so I made payment without any paperwork being done.  

    I figured at worst, my sister who does have the right ID could do it and once she had the reference etc., I could just make the payment.  But I shall try myself first and I much appreciate the tip.
  • Mrs_pbradley936Mrs_pbradley936 Forumite
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    We have a similar situation - the house went for more than the valuation and we were advised to have a Deed of Appropriation. There are 9 beneficiaries and that way they could all use their individual allowance for any Capital Gains Tax due.
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