My wife is one of three beneficiaries in a will (none are direct descendants, only nephews and nieces). They are about to sell the residence of the deceased for about 350k. The house was valued on the IHT forms at 265k so there is an 85k chargeable gain. Is the following correct in terms of CGT options:
If the house is sold by the estate, there is a one off CGT allowance of 12,300 and the remaining tax payable by the beneficiaries (85,000 - 12,300) @ 28% = 20,356 split three ways = 6785.33 each
If the house ownership is transferred to the three beneficiaries prior to sale so they are all the vendors, there is CGT on 85,000 @ 18% (all beneficiaries are in the lower tax bracket) = 15,300 , which when split between three = 5100 which comes well within the personal annual allowance (assuming no other charges) and so there is no tax to pay.
Is this analysis correct (it seems too good to be true!)?
Many thanks for any advice.
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