Capital Gains Tax on Deceased Parents Home

MattHD

My sisters and I lost both our parents during 2020, my father outliving my mother by 7 months. We used a firm of solicitors to sort out the wills and obtain probate. We sold their house recently for more than £500,000 and assume we have to pay capital gains tax on the difference between the probate valuation and the sale price. Would this be the valuation after my mothers death or after my fathers death when the property was re valued, or do we have to pay CGT on both valuations? My sisters and I have spent ages on the governments website and are none the wiser, we just get more and more confused. Any help and advise would be greatly appreciated, thanks in advance, Matt

greatkingrat

If your mother left her share to your father, and then he left the whole house to the children, then it would be the value when your father died that is relevant. 
If your mother left her share to the children directly it would be a bit more complicated.

MattHD

Hi, many thanks for your quick reply greatkingrat, My parents owned the house as tenants in common, my mother's will left her estate to be divided between my father, myself & siblings and her grandchildren. My father's will had left everything he owned to my mother as he did not expect to outlive her. There had been some sort of trust that was dissolved on the advice of the solicitors. Thanks again

Keep_pedalling

MattHD said:

Hi, many thanks for your quick reply greatkingrat, My parents owned the house as tenants in common, my mother's will left her estate to be divided between my father, myself & siblings and her grandchildren. My father's will had left everything he owned to my mother as he did not expect to outlive her. There had been some sort of trust that was dissolved on the advice of the solicitors. Thanks again

If your mother’s will gave your father a life interest in the share she left to others then the whole house should have formed part of his estate, but you said the trust was dissolved when was it dissolved?

MattHD

Don't know about about a life interest but the trust wasn't dissolved until after my father passed.

Jeremy535897

Talk to the solicitors who dealt with the estates. They should know the answer, which may depend on quite what happened to this trust.