CGT Liability on Sale of French Property

DoDa

My Parents owned a holiday cottage in France for 35-years which was sold last year when my mum died. There was no CGT due in France and in accordance with French inheritance law the proceeds of the sale were spilt 50:50 between my dad and mother’s estate. My mother estate was then split equally between my dad, me and my siblings. 

My parents have always rented in the uk and the French property was the only one they have ever bought. It cost around £20,000 in 1989 and sold for around £100,000. The property is very old and over years has been totally renovated including big ticket items like roof, mains drainage, kitchen, bathroom and new floors. The work was mainly carried out by my family and no detailed records kept. 

My question: has the sale triggered a CGT liability for my father and mother’s estate and if so how is this calculated?

I hope this is the correct forum to seek answers on this topic.

Reed_Richards

If the property was owned jointly by both your parents and then sold, then your father could be liable for CGT on his £40,000 profit.  If the estate is liable to CGT it would be on £50,000 minus half the value of the house on the date of your mother's death.  But I don't know the CGT rules specific to property and whether there are any "get-outs" you can use.