CGT liability question

radford

Estate valued at less than £50k, but probate because there is a small plot of land involved which is to be passed to a beneficiary under the will.  The land was bought many years ago for £20k and valued for probate at £40k. Are there any potential CGT concerns for beneficiary or executor (if the beneficiary declines the gift)

RAS

CGT is based on the increase in value between the date of death and date of sale.

If the beneficiary doesn't want it, then sell. Remember the estate has a £3k CGT allowance, so best to crystalise sooner rather than later.

radford

Thank you for quick response - so the increase in value between the initial purchase and DoD is not relevant, only any increase after death?

RAS

Correct. Death removes any liability from the donor's estate.