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Deed of Appropriation - Capital Gains Tax
Hal17
Posts: 420 Forumite
Can I please ask if anyone has any experience in using a Deed of Appropriation?
It looks like we may have to pay £10K Capital Gains Tax after selling costs and applying the single executor's allowance of £12,300. The estate has 5 beneficiaries with equal share, so not a large amount when split between 5 people.
However, I understand that they could all use their individual allowance for any Capital Gains Tax due, so there would be no tax to pay. Is this worth doing considering the sums involved? Appreciate any inputs. Many thanks.
It looks like we may have to pay £10K Capital Gains Tax after selling costs and applying the single executor's allowance of £12,300. The estate has 5 beneficiaries with equal share, so not a large amount when split between 5 people.
However, I understand that they could all use their individual allowance for any Capital Gains Tax due, so there would be no tax to pay. Is this worth doing considering the sums involved? Appreciate any inputs. Many thanks.
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Comments
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It would seem worth doing, but if this is a result of underestimate the value when you submitted the IHT forms rather than in increase because a it has taken a long time to get the house on the market, is it not possible to correct the IHT return instead (I am assuming this does not cause an IHT issue)0
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Good PointI'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.0
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Thank you both for your prompt replies. I believe I submitted the correct value when completing IHT and Probate forms. Even if I included these new property offers we would still not owe any IHT on the estate. It is only the probate valuation for CGT. After some consideration I have decided to arrange a Deed of Appropriation, seems the best option. Thank you again.0
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