Inheritance/CG tax

[joe1]

Apologies but have 'lost' an answer to question answered 2 months ago - my brother and I are told that as executors of our mother's estate we will have to pay approx. �10,000 IT before we can get probate. Once paid and if we make a profit over the price assessed on property for IT - will we be liable to CGT on any profits made ? Thanks

[kags]

The beneficiaries are deemed to acquire the assets at the value they was assessed at for probate, and the Capital Gain will be the difference between the selling cost and this value. This is subject to a taper relief, which varies on how long the assets are held (only applies if you hang on to the asset for more than 2 years), and all beneficiaries have annual exempt allowances for CGT. In addition, costs of sale are deducted from the gain. When you say "property", do you mean land and buildings or just the general assets? "Chattels" ie small personal effects worth less than �6000 are exempt from CGT and there may be other exempt items. This leaflet is very helpful

http://www.hmrc.gov.uk/leaflets/cgtfs1.htm#b9

 

There are also special rules if any of the assets are business assets.