My partner has inherited from his mother a third share in a Cornwall cottage along with his two siblings. The cottage was valued at £345K in June 2017, probate was granted and the estate tax on the entire estate was paid in July 2017. The estate has not distributed the final sums and is still open. The name on the title deed is still in the name of the decedent.
His two siblings now want to sell their shares in the cottage and he wants to buy it. They are asking for a sale price of £375K of which he would pay 2/3 of this value to them.
My question is, is this sale a re=evaluation of the value of the estate, or a CGT transaction. Is the capital gain within the estate, so that all beneficiaries (including my partner) would incur the tax, or this this a sale outside of the estate, whereby only the sellers would incur the CGT? If they just took money from the estate instead of share in the cottage before the final distribution, would this change anything?
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