Deductions on Capital Gains When selling from Estate

Keep_pedalling

WobagUK said:

Oh additionally, do you have to submit proof of deductions against CGT on a simple estate or can you just state what the costs were?

You can deduct selling costs but no estate expenses. 

WobagUK

Keep_pedalling said:

WobagUK said:

Oh additionally, do you have to submit proof of deductions against CGT on a simple estate or can you just state what the costs were?

You can deduct selling costs but no estate expenses. 

Yes I am aware, however that doesnt address the 'proof' question.

Additionally, the below was from HMRC forums and includes the solicitor fees due to probate in the deductable, not just sale.

"Since the guidelines refer to solicitors costs associated with 'buying', does this extend to solicitors costs associated with 'receiving' a property in a will due to obtaining grant of probate. Guidelines excludes 'normal decoration', but there are physical costs which do not classify as decoration...

HMRC: The solicitor costs of acquisition are allowable but you cannot claim for the entry or the clearance of the property."

RAS

What actions have actually been taken to improve the property since probate was granted? And what increase in value do you expect?

Might help identify any actions you could use to reduce CGT?

WobagUK

RAS said:

What actions have actually been taken to improve the property since probate was granted? And what increase in value do you expect?

Might help identify any actions you could use to reduce CGT?

Nothing that falls outside of general consmetics which are not deductible.  So its just going to be assorted fees.  Assuming sale goes through, value increase will be WELL over the 3K allowance, about 15% uplift. And the uplift is from the at-death valuation upto auction a few weeks before probate being granted, not from probate being granted (which was last week), to now.

mybestattempt

The HMRC Capital Gains Manual provides this guidance:

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg30540

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg30560

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg30570

The appropriate figure for incidental expenditure should be included in the computation of the gain, however, HMRC may ask for evidence to verify the figure stated.

msb1234

I would say all the costs you have listed would come out of the proceeds of the estate. At the end of the day, the value of the house as sold less CGT is still presumably a gain to the beneficiaries?