Capital Gains Tax on probate property. 14 July 2022 at 1:53PM in Cutting tax 15 replies 356 views

Froglet

Please could someone simplify for me as to whether CGT will be due.
Last year we had my mother's property valued for probate after she died in September.My sister has been living there butshe has now found a place to rent and the bungalow has just gone on the market.
It was left as part of her estate and so it is still in her name.The value has gone up by 15k and as they are a much sought after property in our area we may get offered the full.asking price.
Which means of course it will be over the CGT limit of £12,300.We could settle for £12,200 but that seems silly.Anyway,I have also read we can claim the cost of selling,which would bring down the figure by possibly £3,000 or so.
Could anyone confirm this can definitely be claimed,and is it a simple process  please?
Thank you.

Keep_pedalling

Yes you can deduct selling costs.

Froglet

Is it an easy enough process ? I've just about had enough of forms,agencies,authorities etc 😂

Jeremy535897

It only adds to the allowable costs box 5 on SA108. Very simple.

You say "we". Who actually owns the property? You, you and your sister, or the estate?

Flugelhorn

Jeremy535897 said:

It only adds to the allowable costs box 5 on SA108. Very simple.

You say "we". Who actually owns the property? You, you and your sister, or the estate?

OP said it was still in her name so presume it is the estate that owns it

Froglet

Jeremy535897 said:

It only adds to the allowable costs box 5 on SA108. Very simple.

You say "we". Who actually owns the property? You, you and your sister, or the estate?

The estate.My sister had lived there with Mum for 20 years and we wanted to make sure she had somewhere suitable to rent,we have another sister as well.We all get on so there was no pressure on her to move.as she has a long term illness and can't afford to buy.

Jeremy535897

Selling costs are typically legal fees and estate duty fees. Depending on the value of the property, they may well amount to £3,000. As I said, all you have to do is add the selling costs to the allowable cost figure in box 5.

Jeremy535897

Flugelhorn said:

Jeremy535897 said:

It only adds to the allowable costs box 5 on SA108. Very simple.

You say "we". Who actually owns the property? You, you and your sister, or the estate?

OP said it was still in her name so presume it is the estate that owns it

It's dangerous to assume anything on this forum without checking.

Froglet

Jeremy535897 said:

Selling costs are typically legal fees and estate duty fees. Depending on the value of the property, they may well amount to £3,000. As I said, all you have to do is add the selling costs to the allowable cost figure in box 5.

Thanks,yes by the.time they have added vat and then the legal fees as well it will be over that sum,so looks like we should be ok.

lindabea

If the property is being left to you and your sisters, you also have the residence nil rate band (currently £175000) to add to the IHT of £325000 making a total of £500000 before any IHT is payable.  .   

uknick

lindabea said:

If the property is being left to you and your sisters, you also have the residence nil rate band (currently £175000) to add to the IHT of £325000 making a total of £500000 before any IHT is payable.  .   

Don't forget if she has a predeceased spouse since 1986 (when IHT came in) there could be another NRB and RNRB added to the estate.  This could give £1m in total.