Capital gains tax when someone dies

35har1old

Keep_pedalling said:

The income of the executors does not come into it, if they sold the house on behalf of the estate then the estate pays the CGT and the rate for estates is 28% with only one £6k allowance available. 

With estates well out of IHT territory you should value the house on the high side to avoid falling into the CG trap. 

The percentage paid by a individual is dependent on income ranging from 18%to 28%

uknick

35har1old said:

Keep_pedalling said:

The income of the executors does not come into it, if they sold the house on behalf of the estate then the estate pays the CGT and the rate for estates is 28% with only one £6k allowance available. 

With estates well out of IHT territory you should value the house on the high side to avoid falling into the CG trap. 

The percentage paid by a individual is dependent on income ranging from 18%to 28%

35har1old  I'm not quite sure what you aiming at with that statement as it's not an individual paying the CGT.

lincroft1710

Planeahead said:

lincroft1710 said:

Was this an actual gain or was the property in fact undervalued at the date of death, which would seem more probable if there was a 20% increase in value?

The property was undervalued at time of probate which was only obtained last week. Is it possible to have this changed?

It's a long, long time since I had any dealings with IHT cases, but where a property was sold fairly close to the date of death, the executors (or their agents) would ask for the sale price to be adopted as the property value as at date of death, which was often agreed to.


If you are able to provide evidence that the original property valuation was incorrect, then the new valuation may be accepted as the correct value. HMRC may decide to refer the matter to the District Valuer for determination