Is CGT payable or not on house sale after 2nd death?

jem16

Mum died March 2024 and left her half of the house to my brother and I using a Liferent Trust to give beneficial ownership to my Dad. House valued at £200k for Confirmation purposes.

Dad died in January 2025. Brother and I are executors and beneficiaries. House valued at £230k for Confirmation purposes. No IHT was due as Dad could use Mum’s NRB.

We have accepted an offer of £230k on the house. 

I’m aware that the full £230k was used for working out any liability to IHT due to the Liferent Trust but I’m not completely sure on the CGT aspect.

Will any CGT be due to be paid?

Keep_pedalling

Their will be no CGT liability on your mother’s share as beneficial ownership resided with your father until his death.

jem16

Keep_pedalling said:

There will be no CGT liability on your mother’s share as beneficial ownership resided with your father until his death.

Thank you. So as things stand with the house valued at £230k on Dad’s death and offer on house also at £230k, there should be no CGT with regards to the house?

RAS

You only pay CGT on any increase between value at death of dad and sale. And the estate has an allowance anyway.

jem16

RAS said:

You only pay CGT on any increase between value at death of dad and sale. And the estate has an allowance anyway.

Yes I’m aware that the estate has a £3k allowance for CGT although this may be needed for any increase in his small amount of shares. 

poseidon1

jem16 said:

Keep_pedalling said:

There will be no CGT liability on your mother’s share as beneficial ownership resided with your father until his death.

Thank you. So as things stand with the house valued at £230k on Dad’s death and offer on house also at £230k, there should be no CGT with regards to the house?

If the agreed sale price was identical to probate valuation the estate will have sold at a loss equal to the sale expenses ( solicitors/estate agents fees, etc).

So your primary concern is whether you can use that loss against gains on sales of other estate assets. If you have yet to sell your father's shares, the loss can be used against any gains from those assets accrued since date of death.

jem16

poseidon1 said:

jem16 said:

Keep_pedalling said:

There will be no CGT liability on your mother’s share as beneficial ownership resided with your father until his death.

Thank you. So as things stand with the house valued at £230k on Dad’s death and offer on house also at £230k, there should be no CGT with regards to the house?

If the agreed sale price was identical to probate valuation the estate will have sold at a loss equal to the sale expenses ( solicitors/estate agents fees, etc).

So your primary concern is whether you can use that loss against gains on sales of other estate assets. If you have yet to sell your father's shares, the loss can be used against any gains from those assets accrued since date of death.

That’s interesting thanks as I hadn’t realise we could offset the loss against the gains. Shares are currently being sold and proceeds ingathered by the lawyer. House will probably take a while yet till missives are concluded and entry date agreed. 

Confirmation value at death on the house was listed at £230k with Confirmation asset at £115k for his half share. As far as I’m aware though it’s the £230k that matters with respect to CGT due to the Liferent Trust.