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Where Taxpayers and Advisers Meet

probate costs in CGT calculation

Brightonian
Posts:142
Joined:Wed Aug 06, 2008 3:31 pm
probate costs in CGT calculation

Postby Brightonian » Thu Jun 20, 2024 10:25 am

I am preparing a CGT computation for the PRs, one of whom is a solicitor. I have included a deduction for the costs of establishing title, using the scale in CG30570. The pro-rated figure I come up with, using the scale, is around £600. The PR has queried this, saying that only the cost of the Probate application (£286) should be claimed, as there were no other costs of establishing title. I had always assumed that the scale applied in all cases, irrespective of the actual costs involved, and that you could claim the scale charge, even if the actual charge was less. However, I can see that it may be a cap, rather than an allowance. Is that correct?
My other question is what are the costs of establishing title? Is it just the Probate fee? In this case, the solicitor PR did all the legal work for free, as the deceased was a family member, so there are no legal fees. But I prepared the IHT400 and charged for that - can that be regarded as a cost of establishing title?
Any help will be gratefully received.
Thank you.

bd6759
Posts:4325
Joined:Sat Feb 01, 2014 3:26 pm

Re: probate costs in CGT calculation

Postby bd6759 » Thu Jun 20, 2024 11:37 pm

You can choose. Either actual cost or the deemed cost.

See SP02/2004

https://www.gov.uk/government/publications/statement-of-practice-2-2004--2/statement-of-practice-2-2004--4

Brightonian
Posts:142
Joined:Wed Aug 06, 2008 3:31 pm

Re: probate costs in CGT calculation

Postby Brightonian » Mon Jun 24, 2024 10:31 am

Thank you very much for replying. Much appreciated.


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