Capital Gains Tax on probate property. 14 July 2022 at 1:53PM in Cutting tax 15 replies 353 views

Jeremy535897

Although presumably irrelevant in this case, I don't think 1986 comes into it. The amount of NRB transferable may be limited if the first death was before 1975.

Choirgrl

uknick said:

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.

RNRB isn’t a consideration for this question, as it’s about CGT rather than IHT.

@Froglet as the administration of the estate has gone over two tax years, I believe the estate will benefit from two years’ annual exemption, so £24,600 in total. https://www.gov.uk/guidance/capital-gains-tax-rates-and-allowances

Edited to correct as I had misunderstood the guidance.

Froglet

Thank you everyone for your helpful advice.Yesterday we accepted an offer that is less than the £12,300 allowance over the value at probate anyway,even though as choirgrl has informated me it could be doubled and others have pointed out I can deduct the expenses involved.
We accepted a lower offer than we initially expected as the buyer is in an excellent position and there is no chain.

Jeremy535897

Choirgrl said:

uknick said:

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.

RNRB isn’t a consideration for this question, as it’s about CGT rather than IHT.

@Froglet as the administration of the estate has gone over two tax years, I believe the estate will benefit from two years’ annual exemption, so £24,600 in total. https://www.gov.uk/guidance/capital-gains-tax-rates-and-allowances

The exemption is an annual one, and the trustees will be selling the property in one tax year, not two. They cannot bring forward an unused exemption any more than an individual can.

Choirgrl

Thanks for the correction - I had misread/misunderstood.