Intestacy Rule

Please see below a brief summary: - Husband passed away in 1987 without a will. The only asset was a residential property worth £60,000. - Intestacy rule was applied and wife was entitled to £40,000 plus £10,000. The remaining £10,000 was meant to be distributed among the children (say a sibling of 3 minors) - The wife did not change the deed and left it on the late husband name - Fast forward to 2019, the wife became ill and no longer has capacity. A new grant was issued to a law firm to sell the property. However, no CGT return was made. - We have taken over this case, can you please confirm weather we need to submit 1 CGT return (for 100% of property) or 4 returns (one for the wife who was entitle to 83% and one for each child). - All 4 have lived at the property as their main and only residence and are eligible for the full private residence relief. is the filing penalty still applicable? I am assuming there is not interest charge on late payment as there is no CGT payable?

Hi
As a UK property and no tax being due, there is no need to file a property return.

Thank you very much for the response. What if this property was not the main residence for the 3 children (now adults) for a few years? Would we need to complete CGT return for each of the 3 children as they each hold 5.6% (combined ownership for the 3 children is 16%)? Or can we complete only one combined CGT return? Thank you

Hi CGTTOA

Yes, a property disposal return is required for each individual who owns the property if UK tax is due. if not their main residence then full private residence relief is not available.
Please take a look at Private Residence Relief (Self Assessment helpsheet HS283)

Thank you