House sold for above probate value

L_S_Mi

I am joint executor and joint beneficiary with my brother for my late mother’s estate. As the executors we have sold her house for which we achieved a sale price £30,000 above the probate value. We have already paid inheritance tax that was due on the estate. Would this gain in value be classed as capital gains tax for the beneficiaries to deal with individually or should it be classed as an amount on which additional inheritance tax is due?

Daniel54

The gain  should be taxed as a capital gain (after allowable expenses) payable by the estate before full distribution to beneficiaries.The tax needs to be paid within 60 days of the sale completion.

L_S_Mi

Thank you. Does that mean that each beneficiary can claim capital gains allowance or not?

p00hsticks

L_S_Mi said:

Thank you. Does that mean that each beneficiary can claim capital gains allowance or not?

Not if the house was still in the deceased's name - my understanding is that the estate has a single CTG allowance of it;s own

Keep_pedalling

p00hsticks said:

L_S_Mi said:

Thank you. Does that mean that each beneficiary can claim capital gains allowance or not?

Not if the house was still in the deceased's name - my understanding is that the estate has a single CTG allowance of it;s own

That is correct, the taxable gain will be £30,000 less £6,000 annual allowance less selling costs.