Deed of Variation how do we save IHT and CGT?

unexpectediteminbaggingarea

I am co-executor to my mother's Will which is mainly a house and very little savings.  The Will left the house and not much else to us four siblings, two of us are executors.  Three of the four have done a Deed of Variation to pass the funds direct to our own children and one sibling did not.  The house eventually sold after 18 months spanning 3 tax years since date of death for about 30k above the probate valuation.  Inheritance tax has been agreed and settled but how to account for Capital Gains Tax on the increase in house value between probate valuation and sale?  There are 7 beneficiaries - 6 grandchildren getting an eighth share and 1 child of deceased getting a quarter share.  How do we account for CGT ie. whose CGT annual allowances are used, the 7 beneficiaries, the original 4 beneficiaries or the 2 executors?  (I've also read somewhere that another allowance can be claimed for the Estate).  And do we use just the current tax year in which the house was sold or do we use previous tax years as well?
The issue isn't clear reading the government website.  Many thanks.

Keep_pedalling

As you sold the house within the estate then you only have one CGT allowance to offset against the gain. You can also offset the selling costs. 

What was the marital status of your mother and the total value of the estate?

poseidon1

Assuming no attempt was made to 'assent' legal ownership of the property to the 7 beneficiaries after the DOV executed (unlikely if you were unaware this process even exsisted), then this was a straightforward executor's estate sale.

As  such and assuming a sale in the current tax year the estate itself has only a single CGT exemption of £3000 in the tax year of death and 2 tax years thereafter, with tax then payable  on the net gain at 24% ( around £6480 on your numbers). Article below is somewhat detailed but covers the main issues you should have been aware of.

https://www.litrg.org.uk/tax-nic/trusts-and-estates/bereavement-tax-issues-death/tax-income-and-gains-after-death#:~:text=If the estate disposes of,sold are of significant value.


Please note the tax was payable within 60 days of the completion date, so I do hope you have not been sitting on this matter too long - see link below which connects to the online reporting process -

https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020

Final point, technically for sales of property, HMRC also  expect a  formal tax return  to be lodged for the tax year of disposal in addition to online reporting within 60 days. If you find this overwhelming, you may wish to consider employing a tax accountant to handle this all on your behalf.