Hi,
I am hoping that someone can help me with my query.
We have inherited some property (non-residential) from my parents. There was no IHT to pay.
The land was obviously valued for probate. Some of the land was sold from within the estate for more than the probate value and hence was liable to CGT from within the estate.
However, some of the land has passed to us as benefactors of the estate. We have immediately sold this land for more than the probate valuation, therefore CGT must be paid somewhere.
My question is where does the CGT liability(s) lie and how is it calculated?
I think there may be two options -
Do we (benefactors) calculate the gain of sale price over the probate valuation and we each pay personal CGT on this gain on our SA108 forms?
Or do we need a new valuation for the date the land was transferred from the estate to us; And the estate pays CGT on this new valuation less probate valuation; and that we pay personal CGT on the sale price less this new valuation?
Thanks
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