CGT on Probate Sale 27 August 2022 at 12:51PM in Cutting tax 4 replies 101 views

philip1988

My father and step mother owned a house as Tenants in Common. My father died in 2017 and left his 2/3rds share to his 3 children. My step mother continued to live in the house until her death in April of this year. During this period my father’s name was not removed and replaced by his children on the deeds with Land Registry.

The house has now been sold and there has been a capital gain since 2017. So, my question is as the deeds were never amended is there still a capital gains liability to be assessed and paid on the increased value of our share of the house?

Thanks you for your help

Keep_pedalling

Did his will give your step mother a life interest in the property? If you did there should be no CGT.

philip1988

Thanks for your reply. Interestingly reading through the will again there is no specific mention of the house. As the house was owned as Tenants in Common the children in theory wouldn't have been able to sell the house anyway until our step mother died or needed to sell to go into care etc. 

Jeremy535897

There won't be a life interest here. Stepmother occupies the property by virtue of her share of it. I suspect that the property was transferred to the children as legatees, and the fact that the process has not been formally completed is irrelevant, and capital gains tax is payable on the shares owned by the children.

philip1988

Jeremy535897 said:

There won't be a life interest here. Stepmother occupies the property by virtue of her share of it. I suspect that the property was transferred to the children as legatees, and the fact that the process has not been formally completed is irrelevant, and capital gains tax is payable on the shares owned by the children.

Thank you, this is as expected