Who pays Capital Gain Tax after death: Personal Representative or Beneficiaries?

Hello, I need help understanding who pays Capital Gains Tax (CGT) in this situation: A taxpayer died in June 2017, leaving her only property (worth £400,000 at death) to: 3 children (25% each); and 10 grandchildren (2.5% each). The property was sold in September 2024 for £500,000, resulting in a £100,000 gain. Who pays the CGT on this £100,000 gain? Does the personal representative paying the CGT at 24% on the full gain, with no annual exempt amount? Or Does each beneficiaries pay CGT on their share of the gain (e.g., children using their annual exempt amount and paying 18% on any excess, and grandchildren possibly having no tax to pay as their shares are small)? If the personal representative is responsible, do they pay the CGT from the estate before distributing the proceeds, or from their personal funds? I’ve reviewed HS282 and CGT guidance but found conflict with https://community.hmrc.gov.uk/customerforums/cgt/5446b9c8-92a5-ee11-a81c-002248c69e85 Your advice would be much appreciated.

Hi ,
 

It depends on whether there is a will or not. If no will then it is the estate declaring all of the gain  and given the time difference then no annual allowance is due. If there is a will, each person named in the will declares their share of the gain. The rate of tax due will be based on the annual income of each person . Thank you .