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Where Taxpayers and Advisers Meet

CGT expenses for executors

AK2021
Posts:6
Joined:Fri Dec 31, 2021 2:52 pm
CGT expenses for executors

Postby AK2021 » Fri Dec 31, 2021 3:18 pm

I am acting as an executor, selling a house in the estate. There will be a CGT taxable gain.
My query is what can I deduct as acquisition costs?
Looking online at HMRC SP2/04 and HMRC CG30570 seem to cover this

"The following amounts may be allowed as the personal representatives’ allowable expenditure for the cost of establishing title."
"Computations should be accepted if based either on the scale or, where it can be proved, actual expenditure incurred."


The gross estate was a little over £1,020,000 and the property was c£900K at probate value
The HMRC scale says I can use a figure of £8000 for the whole estate, so pro rata £7,058 acquisition costs for the property.
Is this correct?
It seems generous/too good to be true.

pawncob
Posts:5099
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: CGT expenses for executors

Postby pawncob » Mon Jan 03, 2022 11:20 am

Probate valuation?
With a pinch of salt take what I say, but don't exceed your RDA

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: CGT expenses for executors

Postby maths » Mon Jan 03, 2022 6:28 pm

The £8,000 is divided between the assets of the estate in proportion to their probate values and allowed on assets sold by the executors.

AK2021
Posts:6
Joined:Fri Dec 31, 2021 2:52 pm

Re: CGT expenses for executors

Postby AK2021 » Sat Jan 08, 2022 12:49 pm

Thank you that is helpful.
I assume the acquisition costs stay the same if I appropriate say 20% of the value to 4 residual beneficiaries before the sale.
So each beneficiary and the estate can claim 20% of the acquisition costs. 20% x £7,058 in my OP.


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