Grateful for any help - I have used the gov.uk CGT guide. A summary of the situation is as follows. Late mother's will leaves house to 4 siblings, property valued at probate (greater value than the red book valuation used to reflect realistic price)however the sales value looks likely to exceed this by £140,000. The probate value was under the IHT threshold as there was rollover relief from the late father's estate. Reading CGT notes each beneficiary can use their CGT allowance and pay Capital Gains on the balance of the gain. The solicitor advises that the Bare Trustee can sell the property on behalf of the beneficiaries to use their CGTAs however she is concerned HMRC may not accept this and push for IHT on the increase to be paid??? There would be some CGT payable by each sibling. Any experience of similar cases? I have used HMRC IHT and CGT guides which I found very helpful. Thank you in advance
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Not sure what your question is. Yes the beneficiaries pay CGT on the their share of the difference between sale proceeds and probate value less their CGT annual exemptions, if available.
If the probate value has not been agreed, yes the subsequent sale price may be a relevant factor in reaching agreement.
BUT if the house is sold before it is distributed to the beneficiaries and is a disposal by the estate, the gain is taxable on the estate.
Are there estate accounts that show what's happened?
What you are saying is confused - therefore confusing. Talk of a bare trustee makes it sound as if the property has been distributed from the estate. The bare trustee would have to act as instructed by the four owners. But in that case the sale would not be relevant to the estate and estate accounts would not need to wait until the property had been sold.
You refer to a solicitor. My best guess is that you have not understood what s/he has told you. (Hence the confused nature of what you are saying.) Have another chat with the solicitor and see whether that helps.
Additional IHT will not be due unless the value used at date of death was too low - and even then only if it has not been formally agreed (cf John's comment above). Is that what the solicitor was suggesting?
Hi, sorry to jump onto an 9ld thread but I have a very similar situation to the one you described. May I ask how you ended up proceeding? Thank you!
Hi, sorry to jump onto an 9ld thread but I have a very similar situation to the one you described. May I ask how you ended up proceeding? Thank you!
This thread is from 2018. Tax rules change.
Unless it is very recent, you should always start your own thread detailing your own situation.