CGT calculation formulas on property sale

HorseWhisperer

Hi there,

We are in the process of selling a house for which I am the executor. I have some questions about the CGT will be calculated which I am hoping somone can help with. 

I have tried using the HMRC CGT property calculator but it doesn't have the option for telling it that it is a house sold from within the estate, so it is just giving me a result which is based on me owning the property, which I don't.

Does anyone know the formula for how to calculate the CGT? I understand that it takes the executor's projected income and tax code into consideration, but now how this actually used to calculate the tax due?

If I input the information into the HMRC calculator as if I did own the house, it is also giving me two different tax rates it has used to work out the tax to pay - an amount at 18% and an amount at 24% - why is it using two different rates?

I understand that the CGT rate is 24% if sold from within an estate. Does the CGT rate differ for a beneficiary if a deed of appropriation is used? One beneficiary has already used up their CGT allowance so trying to work out if it is more beneficial to use deed of appropriation or not.

Does the CGT rate rate differ if a beneficiary earns less than £12,570?

Can a beneficiary use their spouse's capital gains loss if a deed of appropriation is used, or only if the property is transferred into their name legally at Land Registry?

Apologies for all the questions, but just trying to work out the best way to proceed to get the best outcome for the beneficiaries. Many thanks.

Keep_pedalling

Was the property significantly undervalued for probate / IHT return? what level of gain are we talking about? 

The executor’s income does not come into it. Transferring the property to beneficiaries can reduce CGT, but can als create additional problems especially if the beneficiaries are not already property owners. If you have already exchanged contracts then the time for that is passed.

km1500

when someone dies and the executor sells the deceased's house there is no cgt to pay.

the relevant tax to consider is inheritance tax 

the only way cgt would be payable is if on the application for probate you put one value for the house and when it finally sold it had increased in value.

Keep_pedalling

In this case it has taken over two years to get to this stage and from the OPs previous thread CGT will be due.

https://forums.moneysavingexpert.com/discussion/6491181/buying-out-or-renting-siblings-inherited-property/p1

km1500

ah thanks for that - well obviously CGT will be due on the increase in price since probate.