# Capital gains tax on inherited property



## prestige1964 (15 Jan 2014)

Does CGT have to be paid on an inherited property when probate is grantedor when property is sold


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## mercman (15 Jan 2014)

Do you mean CAT rather than CGT. The tax is payable after probate but is dependent as to whether the tax is due; when the death of the doner happened and the beneficiaries total amount of inheritances. 

I'd say it best to have an accountant look at the figures,


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## Dr.Debt (16 Jan 2014)

No CGT payable on inheritances per se.

However if the value of the inherited property is 300K on the date of death and is sold six months later for 400K, then the beneficiaries are assessable to CGT on the 100K. Eventhough they are assessable on the 100K, the amount of tax payable (if any) will depend on their individual circumstances


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## prestige1964 (16 Jan 2014)

Thanks for replies, inherited house at time of death 2 years ago valued at 100k less than value now, house not going to be sold as yet do I have to pay CGT on 100k now at probate or when house is sold , what kind of circumstances would apply to not pay CGT


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## Dr.Debt (16 Jan 2014)

CGT arises on sale of property, not on grant of probate.

No CGT will arise on sale of property if the home has since become your principal private residence.

You should consult with a practising accountant who can evaluate your exact circumstances


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## prestige1964 (16 Jan 2014)

Thank you, different opinions between solicitors and tax consultants, have lived in property for 20 years after probate will own half of property, it will only then become my principle private residence, I understand I will have to stay here for 7 years to not pay CGT, late MIL owned property, my husband died before her


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## PMU (23 May 2014)

Can I get a clarification on this, please?  If a property is sold for an amount higher than the value on the CA24 form, (a) do the executors pay CGT on the increase in value; and then of what remains (b) do the beneficiaries pay CAT on what they inherit?


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## mf1 (24 May 2014)

It might be easier if you posted figures/numbers. 

I recently sold a house in a Probated estate where the value had gone up from date of Probate to date of sale. We vested the house in the beneficiaries and they were able to use their CGT exemption to good effect. An executor does not have the exemption. 

In that case, the people were still within their CAT thresholds.

Where , after payment of CGT, the inheritance still exceeds the beneficiaries' threshold I suspect ( open to correction) that there is a further CAT liability.

Given the current bubble, I am aware that clients are being advised to put the property on the market and agree a sale to fix the value for Probate so that the tax aspects of an estate are resolved early. 

mf


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