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Posted Wed, 13 Apr 2022 11:59:49 GMT by tigerspill
Hi, I am hoping that someone can help me with my query. We have inherited some property (non-residential) from my parents. There was no IHT to pay. The land was obviously valued for probate. Some of the land was sold from within the estate for more than the probate value and hence was liable to CGT from within the estate. However, some of the land has passed to us as benefactors of the estate. We have immediately sold this land for more than the probate valuation, therefore CGT must be paid somewhere. My question is where does the CGT liability(s) lie and how is it calculated? I think there may be two options - Do we (benefactors) calculate the gain of sale price over the probate valuation and we each pay personal CGT on this gain on our SA108 forms? Or do we need a new valuation for the date the land was transferred from the estate to us; And the estate pays CGT on this new valuation less probate valuation; and that we pay personal CGT on the sale price less this new valuation? Thanks
Posted Tue, 19 Apr 2022 10:17:47 GMT by HMRC Admin 19

The gain calculation on the beneficiaries is the same as on the trust.

The gain is the sale price less the probate value.  

CG31180P - Death and Personal Representatives: Legatees and their treatment: Computing gains arising to legatees: contents

Thank you.
Posted Tue, 19 Apr 2022 10:46:07 GMT by tigerspill
Thank you for your answer. Can I just ask one other question. This sale is farm land - so not residential property. Am I correct that because no part of this sale is residential property, that I dont need to do the 60 day registration of any capital gain, and can leave this until my normal self assessment return?
Posted Fri, 22 Apr 2022 15:24:05 GMT by HMRC Admin 11
You may have to report the gains on land within the 60 day period.  
Please read the following guidance:
Tell HMRC about Capital Gains Tax on UK property or land if you’re non-resident
Thank you. 
Posted Sat, 23 Apr 2022 16:20:42 GMT by tigerspill
Thank you. I should have said that I am a UK resident. The link that you posted seems to relate to non-UK residents.
Posted Wed, 27 Apr 2022 12:30:15 GMT by HMRC Admin 19

Apologies, you can see the following link to guidance on sale of property andland:

Report and pay Capital Gains Tax on UK property

Thank you.

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