Capital gains on inherited property from spouse.

Property owned jointly by spouses husband dies property sold

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Can we use the half share of probate value and half share of original cost to calculate the capital gain on the sale of a previously let residential property? 

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By Paul D Utherone
28th Nov 2023 23:30

Yes

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Replying to Paul D Utherone:
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By Di
29th Nov 2023 06:50

Thanks for your reply, that is what I thought until I found this information
https://community.hmrc.gov.uk/customerforums/cgt/f05d60a0-d92a-ee11-a81c...
and an article in the Guardian
https://www.theguardian.com/money/2016/oct/20/inherited-house-cgt-tax-bill
So I am now confused and cannot find the answer in Tolleys!

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Replying to Di:
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By FactChecker
29th Nov 2023 11:29

Not my specialist area ... but there's a glaring difference between your position (as posted) and that in HMRC's Forum response ... the word 'survivorship'.

If the transfer in ownership after death is due to survivorship rules then it has not (or at least should not) have been part of any estate for IHT calculations.
So the forum is merely saying you can't bypass both tax routes.

Were your couple joint tenants or tenants in common?

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Replying to FactChecker:
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By Tax Dragon
29th Nov 2023 11:55

NO! How many times do I need to tell you this?! ;-p

A person's IHT estate is defined in... who knew?... IHTA. The (basic) definition roughly translates/simplifies to "stuff they beneficially own". [I include "(basic)" because of possible modifications to that definition, depending on circumstances.]

I believe is it possible to have beneficial ownership as a joint tenant.

The HMRC comment is scary.

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Replying to Tax Dragon:
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By FactChecker
29th Nov 2023 12:28

Can hardly believe that I tried to justify, or even make sense of, an HMRC response ... instead of my normal stance of questioning its validity.

But at least they redeem themselves in their manual (per the helpful link provided by cohen below) ... now to work out how to redeem myself! :-(

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Replying to Tax Dragon:
By Paul D Utherone
29th Nov 2023 14:35

Tax Dragon wrote:

NO! How many times do I need to tell you this?! ;-p

A person's IHT estate is defined in... who knew?... IHTA. The (basic) definition roughly translates/simplifies to "stuff they beneficially own". [I include "(basic)" because of possible modifications to that definition, depending on circumstances.]

I believe is it possible to have beneficial ownership as a joint tenant.

The HMRC comment is scary.

…and at odds with its own Manual as posted below by cohen.

HMRC customer forum…such a useful resource of dubious answers

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Replying to cohen:
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By Di
29th Nov 2023 15:24

Thank you, I really appreciate you sending me this link.

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Replying to cohen:
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By Justin Bryant
29th Nov 2023 15:30

But see here re mirror wills (that can sever a JT): https://www.thegazette.co.uk/wills-and-probate/content/104058

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