CGT on inherited property

Hi, I'm after some guidance on the following: My aunt died in March 2021. My sister and I plus a family friend were left my aunts property (her only home) in her will and I and another (a different) family friend were named executor. The inheritance tax forms/calculation were submitted and the relevant inheritance tax was paid. The property was valued at £650k at time of death March 2021 and sold for £685k in March 2022, the sale completed March 2022 whilst still held within the estate of deceased aunt. The proceeds of the sale were transferred to the solicitors handling the administration of the estate, which was completed in June 2022 and the proceeds of the sale were then split between the 3 beneficiaries and paid out to each of us. (The estate comprised only of the property and some cash savings). As the property was left in the will to 3 of us, I believed that because the capital gain on the property, split between 3, was below the £12,300 personal allowance for 2021/2022, that I did not need to report and pay any gain within 60 days, But I'm now concerned that I've made a mistake as the executor of my Aunt's estate. So, my questions are, is it correct that I could split the gain between myself and the other 2 beneficiaries. Or as the property was sold whilst still held within the the estate, is it just the estate that had a single CGT allowance of £12,300, and as one of the executors I should have reported the gain and paid this within 60 days of the sale? If the latter, how should I now report that gain? Also, what is the responsibility of the other executor ? (I was executor and 1/3 beneficiary of the estate and the other executor was just an executor and not a beneficiary as well). Thanks

Hi Lisa Hall,
As it was the estate that sold the property then there is only 1 Capital Gains Allowance on this and the sale should have been reported within 60 days.
Report and pay your Capital Gains Tax
It is the main executor who would report the sale.
Thank you. 

Hi, Please can you calrify how the above which has three beneficiaries but the estate pays the CGT is different to this, where there are 2 beneficiaries but teh CGT can be split 50%? Hi, I'm after some guidance on the following: My mother died in Nov 2021. My brother and I were left my mother's property (her only home) in her will and I was named executor. The inheritance tax forms/calculation were submitted, with no Inheritance tax to pay as the estate value was under the threshold. The grant of probabte application was completed/granted. The property was valued at £170k and sold for £189k (property sale completed May 2022). As the property was left in the will to 2 of us, I believed that because the capital gain on the property, split between 2, was below the £12300 personal allowance for 2022/2023, that I did not need to report and pay any gain within 60 days, but I still needed to report it, as per the information on this webpage https://www.gov.uk/capital-gains-tax/work-out-need-to-pay: You still need to report your gains in your tax return if both of the following apply: the total amount you sold the assets for was more than 4 times your allowance you’re registered for Self Assessment As I complete a Self Assesment for the 'High Income Child Benefit Charge', I planned to report this via my SA. However, on completing the sections for disposal of asset/property on my Self Assesment, I realise there is no consideration for the gain being split accross beneficiaries (my brother and I). This has led me to further reading, and I'm now concerned that I've made a mistake as the executor of my mother's estate. So my questions are, is it correct that I could split the gain between my brother and I? (If I complete the calculation on https://www.tax.service.gov.uk/calculate-your-capital-gains/resident/properties/disposal-costs, entering values for only my share in the property, is calculates there is nothing to pay) Or is it the estate that had a CGT allowance of £12300, and I should have reported the gain and paid this within 60 days of the sale? If the latter, how should I now report that gain? Is it done via a 'Capital Gains Tax on UK property' account? Thank you. Posted 11 months ago by HMRC Admin 20 Response Hi G2023, Please note that, as joint inheritors of your late mother's home, both you and your brother should declare 50% of the Capital Gains tax profit and deductions in your own Self Assessment tax returns (on the grounds that the asset was sold for more than 4 times your £12300 CGT allowance). Because your 50% gain was below the £12300 threshold, there was no requirement to report the transaction within 60 days. Report and pay your Capital Gains Tax Thank you.

Hi Nicholas Miller

A capital gain must be reported on a self assessment tax return, when two conditions are met.  
1 - A tax return is required for any other reason and
2 - the disposal value of the asset exceeds £50,000.  
You meet both criteria, so you need to declare your 50% share of the gain on your tax return.  
As the property was inherited by you and your brother, you each recieved 50%.  In your tax return you declare 50% of everything.  50% of the disposal value, 50% of the probate value plus 50% of the disposal costs.  
Based on your figures, your return will show a gain, but when self assessment applied the annual exempt allowance, no capital gains tax is payable and this will be reflected in the SA302 tax calculation.  
In the situation where only 1 or none of the criteria is met and there is not capital gain liability, there is nothing you need report to HMRC.

Thank you