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Hi please can someone shed some light on the following scenario, a bit of a head scratcher for me;

Mr X & Mrs X jointly own a 2nd property worth £100k. Bought originally for £50k. Allowable expenses in that time total £10k.

Mr X dies and property passes to Mrs X, market value still £100k.

Does all the gain die on death of Mr X?

So if Mrs X then subsequently sold for £120k a few years later it would just be the gain minus inherited market value (20k) that is applicable for CGT before CGT exemption?

Or does only Mr X’s proportion (50%) of the gain disappear before subsequent sale?

Thanks.

Mrs X has allowable expenditure of £75K.

This is half the original cost and value of the other half when she inherited it.