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Posted Wed, 20 Sep 2023 11:08:09 GMT by G2023
Hi, I'm after some guidance on the following: My mother died in Nov 2021. My brother and I were left my mother's property (her only home) in her will and I was named executor. The inheritance tax forms/calculation were submitted, with no Inheritance tax to pay as the estate value was under the threshold. The grant of probabte application was completed/granted. The property was valued at £170k and sold for £189k (property sale completed May 2022). As the property was left in the will to 2 of us, I believed that because the capital gain on the property, split between 2, was below the £12300 personal allowance for 2022/2023, that I did not need to report and pay any gain within 60 days, but I still needed to report it, as per the information on this webpage You still need to report your gains in your tax return if both of the following apply: the total amount you sold the assets for was more than 4 times your allowance you’re registered for Self Assessment As I complete a Self Assesment for the 'High Income Child Benefit Charge', I planned to report this via my SA. However, on completing the sections for disposal of asset/property on my Self Assesment, I realise there is no consideration for the gain being split accross beneficiaries (my brother and I). This has led me to further reading, and I'm now concerned that I've made a mistake as the executor of my mother's estate. So my questions are, is it correct that I could split the gain between my brother and I? (If I complete the calculation on, entering values for only my share in the property, is calculates there is nothing to pay) Or is it the estate that had a CGT allowance of £12300, and I should have reported the gain and paid this within 60 days of the sale? If the latter, how should I now report that gain? Is it done via a 'Capital Gains Tax on UK property' account? Thank you.
Posted Fri, 29 Sep 2023 14:55:48 GMT by HMRC Admin 20
Hi G2023,

Please note that, as joint inheritors of your late mother's home, both you and your brother should declare 50% of the Capital Gains tax profit and deductions
in your own Self Assessment tax returns (on the grounds that the asset was sold for more than 4 times your £12300 CGT allowance).
Because your 50% gain was below the £12300 threshold, there was no requirement to report the transaction within 60 days.        
Report and pay your Capital Gains Tax

Thank you.
Posted Sun, 01 Oct 2023 08:50:04 GMT by G2023
That’s great, thank you for your response.

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