Executors and CGT Liability

shiraz99

I am aware that the executor, or personal representative of an estate, is liable for CGT on the sale of the property, but is this just the proving executor, or all executors, incluing those that have their powers reserved?

To clarify; there are three executors, two of which have their powers reserved whilst the third applied and received the grant of probate. If, when the house is sold and there is a gain can we take advantage of all 3 executor's annual allowances or would only the executor named in the grant have an allowance? 

Keep_pedalling

The estate only gets one allowance regardless of the number of executors.

shiraz99

Keep_pedalling said:

The estate only gets one allowance regardless of the number of executors.

I understood the personal representative get's the allowance, rather than the estate, hence the question.

https://www.gov.uk/guidance/capital-gains-tax-rates-and-allowances#:~:text=Executors and personal representatives&text=You're entitled to the,inheritance and Capital Gains Tax.

shiraz99

Taken from https://www.gov.uk/government/publications/death-personal-representatives-and-legatees-hs282-self-assessment-helpsheet/hs282-death-personal-representatives-and-legatees-2019

CGT liability for the period of administration

During the period of administration, the personal representatives may be liable to CGT if they sell or otherwise dispose of any of the assets in the estate. This does not apply when assets are passed to legatees under the terms of the will, and so on.

During this period the personal representatives have absolute control over the assets, except those that have been passed to the legatees. They’re not bare trustees or nominees for the legatees.

Where:

• an asset has not been formally transferred to a legatee
• the residue of the estate has not been ascertained (see above)
• the asset is disposed of by the personal representatives
• a gain arises

the gain is chargeable on the personal representatives and not the legatee.

Note the plural, which is why I ask whether a, all executors get an allowance, and b, does this include power reserved executors.

Jeremy535897

Section 1K(7) TCGA 1992:
"(7)For the tax year in which an individual dies and for the next two tax years, this section applies to the individual's personal representatives as if references to the individual were to those personal representatives."

So all the personal representatives collectively are treated as one individual, the deceased.