Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Alice Holt
    • By Alice Holt 8th Apr 18, 3:09 PM
    • 2,409Posts
    • 2,796Thanks
    Alice Holt
    Capital Gains Tax following probate
    • #1
    • 8th Apr 18, 3:09 PM
    Capital Gains Tax following probate 8th Apr 18 at 3:09 PM
    A friend has asked me this question.

    She has inherited investments from her mother.
    Probate and the succeeding process took some time to complete, consequently the investments only came available to her recently.
    She has sold those investments - they have increased in value by c.18k since probate.

    What is her liability for CGT?
    Her income is less than the personal allowance.

    Her solicitor does not think there is CGT, as she wasn't able to access it during that period of capital gain. And that she doesn't need to advise HMRC.

    I not sure this is correct. I suspect she may have a CG of 18 less the CGT allowance, i.e 6.7k @ 10%. So a CGT liability of c.670.

    My suggestion was to notify HMRC of the circumstances and ask them for guidance.

    What do other forumites think?

    Many Thanks.
Page 1
    • 00ec25
    • By 00ec25 8th Apr 18, 3:25 PM
    • 6,991 Posts
    • 6,661 Thanks
    00ec25
    • #2
    • 8th Apr 18, 3:25 PM
    • #2
    • 8th Apr 18, 3:25 PM
    what does "came available to her" mean?

    It appears the investments have been sold by her AFTER the estate has been distributed to her as the beneficiary?

    no idea why the solicitor thinks that does not mean a CGT liability based on the probate value, as you yourself have identified. Just because the solicitor did not sell as executor does not mean the shares are somehow revalued when the executor then distributes to the beneficiaries and they then sell them.
    • Tom99
    • By Tom99 8th Apr 18, 3:47 PM
    • 2,641 Posts
    • 1,805 Thanks
    Tom99
    • #3
    • 8th Apr 18, 3:47 PM
    • #3
    • 8th Apr 18, 3:47 PM
    There will be a capital gain and tax will be payable on 18,000-11,300-allowable expenses.
    If the estate sold the shares tax will be at 18% but if the shares were transferred by the estate to your friend then she will be taxed at 10%.
    She takes on the shares at probate value but can offset any costs which were incurred in transferring the shares to her plus any disposal costs.
    • silvercar
    • By silvercar 8th Apr 18, 3:51 PM
    • 37,793 Posts
    • 159,107 Thanks
    silvercar
    • #4
    • 8th Apr 18, 3:51 PM
    • #4
    • 8th Apr 18, 3:51 PM
    Her solicitor does not think there is CGT, as she wasn't able to access it during that period of capital gain. And that she doesn't need to advise HMRC.
    Ask her solicitor to indemnify her against any loss incurred by taking his advice!
    • Alice Holt
    • By Alice Holt 8th Apr 18, 5:05 PM
    • 2,409 Posts
    • 2,796 Thanks
    Alice Holt
    • #5
    • 8th Apr 18, 5:05 PM
    • #5
    • 8th Apr 18, 5:05 PM
    Thanks all,

    On the face of it. it did seem strange advice to me.
    Just wondered if there was anything about the workings of probate and inheritance I wasn't aware of.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,445Posts Today

9,142Users online

Martin's Twitter