Chris Peel
Joined: 10/29/2024
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Reporting the sale of property where there is no CGT liability.
My wife and her brother (both existing home owners) were left their father’s house in his will. The will set up a trust by which his second wife had a lifetime interest in the property, with the 2 beneficiaries as trustees. The estate (including the house) was subject to probate and fell under the IHT threshold so no IHT was levied. The beneficiaries’ father died in late 2016. In Feb this year his second wife died and therefore allowed the house to be prepared for sale. In the intervening 7+ years the property was largely neglected by the resident and her son who lived there, and as a consequence it’s value is now less than that declared at the time of probate (£300k vs £325k). The owners have agreed a sale and their solicitor advises that the sale should be reported to HMRC and CGT paid in 60 days [from the date of sale]. As there is no capital gain (actually a loss) with the disposal price and the value at the date of death is reporting to HMRC still a requirement? Given the circumstances outlined am I right to assume that there can be no CGT liability for the owners? -
CGT on inherited assets from an estate -reporting and liability
My wife and her brother (both existing home owners) were left their father’s house in his will. The will set up a trust by which his second wife had a lifetime interest in the property, with the 2 beneficiaries as trustees. The estate (including the house) was subject to probate and fell under the IHT threshold so no IHT was levied. The beneficiaries’ father died in late 2016. In Feb this year his second wife died and therefore allowed the house to be prepared for sale. In the intervening 7+ years the property was largely neglected by the resident and her son who lived there, and as a consequence it’s value is now less than that declared at the time of probate (£300k vs £325k). The owners have agreed a sale and their solicitor advises that the sale should be reported to HMRC and CGT paid in 60 days [from the date of sale]. As there is no capital gain (actually a loss) with the disposal price and the value at the date of death is reporting to HMRC still a requirement? Given the circumstances outlined am I right to assume that there can be no CGT liability for the owners?