Capital Gains Tax after selling inherited property abroad

My father passed away last year in Spain where he was domiciled. Myself and my three brothers inherited his Spanish flat. It was immediately valued by an estate agent and put up for sale. We sold it for around £5000 less than what it was valued at. As we sold it for LESS than it's market value at the point of our father's death, does this mean that we don't have to pay Capital Gains Tax (as we made a 'loss' rather than a gain)? If that's the case, do we still need to declare the proceeds?

Hi AshB,
As sold for less than the 'probate' value then no capital gains are due.
If your share of the value of the property was more than £50,000 then it still needs to be reported.
Thank you.