Capital Gains Tax after second death

jem16

I’m just looking to clarify things whilst I await Confirmation (Scotland) coming through. 

My mother passed away in March 2024 and her Will left her half of the house to my brother and I with a Liferent Trust created to give my father the beneficial right to live in the property till his death. 

My father passed away in January of this year and the house will be sold once we have Confirmation from the court. There is no IHT due as Dad was able to use my Mum’s NRB plus has his own RNRB - Mum’s is there too but not needed. 

We don’t yet know if the house will sell higher than the Confirmation value so may be no CGT due anyway, but I’m just hoping someone can clarify what happens if there is. Might determine what offer is accepted I suppose. 

The house remained in Dad’s name till his death so I’m assuming it’s the estate that’s selling the house. Both my brother and I are the executors and the beneficiaries although I will probably be looking to do at Deed of Variation on my share to give most of it to my sons instead of me - trying to make sure my estate isn’t subject to IHT later on. 

So with that in mind, is it one CGT allowance for the estate and who needs to report the CGT?

Keep_pedalling

I would not except a lower offer just to avoid CGT as you will still get 76% of any gain.

jem16

Keep_pedalling said:

I would not except a lower offer just to avoid CGT as you will still get 76% of any gain.

No I doubt we would either. 

However still looking for answers to the other questions. Is it one CGT allowance? Who reports the gain?

Keep_pedalling

The estate gets an allowance of £3k, and you can also deduct the selling costs. The estate administrators are responsible for paying it.