If he does not already have a house in his own name he can register it in his name and it is free of Capital Gains Tax. If he already has a house then he will be liable to Capital Gains on the extra �50,000. Not sure where you get the �25,000 from ? �310,000 - �260,000 = �50,000. The first �8,800 of gains is free from tax this tax year and this allowance goes up to �9,200 on April 6th 2007. If you are married you can adjust the will so that you inherit the property jointly and you both get to use your CGT allowance. My wife and I did this successfully two years ago. Check with the solicitor that did the probate.