Paying CGT after death

Not HMRC...correct, no, you cannot utilise the individuals CGT allowances if the property did not pass from the estate in to the beneficiaries names prior to sale, as the estate is selling the asset, not the individuals...moving the property (or setting up legal position prior to sale) is something that is commonly done for this reason, to reduce the tax due via additional exemptions (solicitors usually suggest it automatically...dependent if tax due/beneficiaries individual positions)...as the property didnt pass it is for the estate to report the gain and pay the tax, not the individuals themselves.

Hi
The sale will need to be reported to HMRC and the tax paid before the estate can be classed as finalised in order to distribute the funds. If they have reported the sale online they should have the details to allow them to pay. If in paper form, we aim to process these within 10 weeks of receipt.

Hi Woodman here... I have just seen two responses regarding reporting sale of probate property. My understanding is : If no CGT to pay then no need and distribute the funds If CGT to pay, then this has to be paid first before funds are distributed, which is logical and understood. Am I correct here? Thank you again

Hi Marc
If the property was named in a will and bequeathed to the beneficiaries in the will, then each beneficiary would inherit a proportion of the property on the death of the owner and each beneficiary would need to work out if they have made a gain on the disposal of the property, not the estate.  If the property was not part of a will, then the estate is reposnsible for paying any capital gains arising from the disposal.  In 24/25 the annual exempt allowance for individuals is £3000.  For Estates it is £1500.  (Capital Gains Tax rates and allowances).  Have a look at helpsheet HS284 (HS282 Death, personal representatives and legatees (2024)
 

Hi, Three named people in a will have equally inherited a property, which has now been sold. We each need to individually declare and pay CGT on the sold house. When completing the CGT online form, for questions related to the expenses, purchase price and sold price - do we just divide the actual figures by 3 to account for our ownership of only a third of the house each? i.e. When each of us complete the form If the house valuation at the date of death was £300,000 do we each declare the inherited value as £100,000 If the house sold for £360,000 do we each declare the selling price to be £120,000 If the selling expenses were £15,000 do we each declare the costs of selling as £5,000 Thanks, Marc

Hi
Any UK resident with a gain resulting in a tax liability, must declare the gain.  Any non UK resident disposing of a property must declare the disposal.

My father died over a year ago, he was an actor. Since then we’ve received trickles of Royalties add up to less than £1K per year. What do we do ?

Hi Marc
As there are 3 of you, all the costs, such as solicitors fees, estate agent fees, etc are divided 3 ways.  This allows each beneficiary to deduct and equal amount of expenses. When declaring your gain on the capital gains return form, everything shown on the form is 1/3 of the full amount. Eg. As the disposal value of the property was £360,000, you divide this by 3 to get each individual's disposal value of £120,000.  Do this with the probate value at date of death and deduct from the disposal value and then deduct 1/3 of the allowable costs.  This will give each of you, your own individual gain.

Hello, Can one claim the cost of paying an accountant to submit a CGT return, after probate or otherwise? Many thanks indeed Mike

Hi Melissa MGP,
Please find guidance at:
Dealing with the estate of someone who's died - Managing and selling assets.
Thank you.