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Where Taxpayers and Advisers Meet

CGT on Estate house sale

david66
Posts:16
Joined:Fri Jan 22, 2021 7:03 pm
CGT on Estate house sale

Postby david66 » Wed Sep 29, 2021 5:14 pm

If a house has increased in value between when the IHT valuation was made and when the sale takes place then difference is subject to CGT.

My question is who is responsible for paying the CGT. Is it the estate or the individual beneficiaries of the estate, and are there any allowances?

Many thanks.

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: CGT on Estate house sale

Postby Jholm » Thu Sep 30, 2021 8:47 am

Assuming it was sold during the estate administration, then the estate is liable.

PPR relief might be available if the beneficiary/ies have occupied the property in this period.

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

Re: CGT on Estate house sale

Postby maths » Thu Sep 30, 2021 9:02 pm

There are two options.

Either the executors sell the property during the estate's administration

OR

The property has been left to a beneficiary bye will and effectively the executors pass the property to the beneficiary who then sells the property.

Under the former the executors are liable for the CGT (paid out of the estate itself) .
Under the latter the beneficiary is liable for any CGT.

PPR may be available but certain conditions need to be satisfied.

david66
Posts:16
Joined:Fri Jan 22, 2021 7:03 pm

Re: CGT on Estate house sale

Postby david66 » Thu Sep 30, 2021 10:35 pm

There are two options.

Either the executors sell the property during the estate's administration

OR

The property has been left to a beneficiary bye will and effectively the executors pass the property to the beneficiary who then sells the property.

Under the former the executors are liable for the CGT (paid out of the estate itself) .
Under the latter the beneficiary is liable for any CGT.
Many thanks for the reply. In this instance the executors are also the beneficiaries. Does this leave either option open?


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