Capital Gains Tax on fathers estate

PHANTOM1125

Good Evening

Should be simple but why is this getting complicated.

Father died Sept 2025. House valued at 475000 and sells for 485000 last week. Costs at this stage around 8000 pounds.

Shares valued at death at 15000 and sell at 19000 in May.

There are two executors.

What tax do we owe and if we do how do we go about it.

Thanks for your help

UKTaxHelper

Both sales land in the same tax year so you get one £3,000 allowance between them, not two. Rough numbers, £2,000 on the house after costs and £4,000 on the shares, so about £3,000 taxable at 24%. The bit that catches executors out is the house, that one has to be reported within 60 days of completion.

PHANTOM1125

Thank you for your reply, appreciate that. One allowance per estate not per executor? If all allowance is on the house then its on 3000 on the shares? How do we do this and in what time ?

Reed_Richards

Are all costs associated with the house sale tax-deductible for CGT?

PHANTOM1125

Thanks for your reply

Its solicitor, estate agent, EPC, Credas, Skip £400

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82106036#Comment_82106036

Only selling costs can be deducted so you can’t include things like the skip.

PHANTOM1125

Thanks for letting me know Keep pedalling

UKTaxHelper

One between you both, executors count as one estate rather than two people. And you don't pick which asset it comes off, it just comes off the total, so roughly £3,000 taxable either way. The shares went first in May, so by the time you get to the house the allowance is gone. Whole house gain goes on the 60 day return, shares on the estate return by next January.

PHANTOM1125

If I may ask the forum one more question. CGT on assets that have grown in value between IHT and when the estate is distributed.

Are NS&I growth bonds and index linked savings exempt?

Are other building society fixed bonds exempt?

Many Thanks

poseidon1

NSI growth bonds are interest bearing accounts so liable to income tax on the so called growth. That similarly applies to all building society bonds based on accumulation of interest over fixed periods.

Index linked savings certificates are wholly exempt, whilst the capital return on Index linked gilts are similarly CGT free although the small annual interest coupons liable to income tax.

Does the estate hold the assets you mentioned?

PHANTOM1125

Thank you very much for your reply

Thanks that helps. Yes the estate holds NSI growth bonds and other BS bonds.

Thanks