Declaring Capital Gains Tax

My brother and I inherited property from my father. (He passed away on 29/12/23) The split is 50-50. If we sold the property for more than it was valued for probate, and have to pay Capital Gains Tax on the difference - How do we each report our own portion of the capital gains tax? Can one of us do it on behalf of the other? There is no Power of Attorney. Do we need to register, report and pay out half of the tax separately? Also - if I report and pay my half of the Capital Gains Tax, will I also need to declare it on my next tax return, seeing as I have already paid GCT? (I am self-employed - my brother is not.) It all seems very complicated, so I don't know if a complete answer to my problem is possible. (I'm sorry I posted this in the self assessment forum and this seems like a better place for it)

Hi T_Trim,
As you are both the beneficiaries of your late father's will, you would each be required to calculate your own Capital Gains liability.
To help you with this endeavour, there is a Capital Gains tax calculator here:
Capital Gains Tax,
Which you can each use to calculate your own gain.
If there is no gain, then keep a copy of your calculation for your records, as nothing elses needs to be done.
If Capial Gains Tax is payable, you can move on to the next screen and create a capital gains account.
You can log into the account and declare your gain, as well as pay the tax that is due.
This ideally, should be done within 60 days of the completion date, otherwise penalties and interest charges may apply.
If you are required to complete a tax return for any other reason and the disposal value is over £50000, then you must declare the disposal in your Self assessment tax return.
Thank you. 

Hello, thank you for the reply. Unfortunately, that link doesn't work. There will definitely be a gain, my concern is that I'm self employed and I don't know if I should declare it on next years (2024 to 2025) self assessment tax return. The sale of the property is well over £50,000 but the taxable amount is 26,000. If I register and pay my share of CGT and then ALSO report it in my next tax return, won't I be made to pay twice? this is the part I don't understand. Also will my brother need to register for CGT as he doesn't have a self-assessment account? Kind regards Tess

Hi T_Trim,
You both need to report your own share.
As you have inherited it 50/50, everything will be split the same way.
Gains on UK resdiential property need to be reported and paid within 60 days.
Please see:
Report and pay your Capital Gains Tax
Thank you. 

 

Thank you - but this doesn't address my confusion about having to register and pay within 60 days - and then having to ALSO declare it on my next self-assessment tax return. Won't I get taxed twice if I do that?

Not HMRC...no, because, on the return, you show the calculation again, AND complete the box on the CGT pages with the amount of CGT tax already paid. When you complete a CGT return you can only estimate your income so the CGT is an estimated figure based on the amount of BR available before higher rate CGT, when the return is completed it confirms your income for the full year and there may be additional CGT due or a repayment of CGT, depending on how good the estimate of income was when the CGT return is completed. To confim, CGT return first, based on bast estimates of other income, SA return later, confirming CGT figures and amount paid and accurate figures of income known.

Hi Clive and many thanks for a clear answer! Much appreciated.

Hi T_Trim,
It is not clear from your question exactly when the property was sold, but Capital Gains on residential property must be reported within 60 days of selling the property using our 'Capital Gains on UK Property' service.
As someone who is already required to submit a Self Assessment tax return, the capital gain should be reported again in the appropriate pages (SA108) of your return.
When reporting the gain, you will be asked to confirm the amount of Capital Gains Tax already reported and the amount of tax already paid, thereby giving you credit for the tax already paid.
Your brother would only have to register for Self Assessment if he meets the SA criteria; otherwise, he will only have to report his share of the gain via the Capital Gains on UK Property service.
Report and pay your Capital Gains Tax
Thank you. 
     

 

HMRC Admin 25 - thanks so much for the clarifying information. Kind regards.

Feedback .

It will not let me enter the amount of tax already paid on capital gain after entering capital gains already declared