How to Pay CGT on a Property Sold By an Executor For an Estate

In Oct 23, my Aunt left her all her estate (house plus investments) to four relatives. Two of the four beneficiaries are the executors of the estate. I am one of those executors. After grant of probate, the executors put the house on the market (it was not transferred in ownership to the beneficiaries) as they wanted the funds. The Estate has now sold the house for a sum in excess of the probate agreed value. Therefore CGT is owed on the value uplift. One of the beneficiaries has a CGT loss that they want to offset against their CGT gain from this inheritance. I have confirmed with your helpline that each beneficiary can make their own CGT declaration and pay their 25% of the tax bill within 60 days. Can each of the beneficiaries claim a £3000 CGT allowance against their bill - and how do you offset a CGT loss that has been accrued from the last tax year.

Hi,

If there is a Will, the Executors must check the terms to check if there are specific instructions regarding the property. Sometimes a Will specifies that a property, or share of a property, should be held in Trust for the beneficiaries until a certain time, or other such instructions. If so, the Executors must follow the terms of the Will.

But if the Will doesn't make any specific provisions for the property, the Executors should proceed as they see fit. Either the property will need to be transferred into the names of the Beneficiaries (as set out under the terms of the Will) or sold. If the property is sold, the proceeds will then go into the Estate to be distributed to the Beneficiaries.                                                                                                                                                                                                                                                                                                                                      
It is therefore the estate that is selling the property and personal cg losses of the beneficiary cannot be used.

Thank you.