Capital Gains Tax on an inherited property

[Tom O'Rourke]

We are in thr process of selling an inhereted property (there are 4 benificaries), for the purpose of probate it was valued at 350K however we felt it should have been 400K the estate agent was unwilling unable to use this value. Thw house eventually sold for 420K.My questions are
1. What deductions exemptions are allowed before calculating CGT
2. What is the time frame
3. What forms are neccessary

 

[Nareik]

I am also in a similar situation looking for some answers.
As far as I can make out (relevant to your situation) CGT is payable at 33% on the gain between the probate figure of 350k and the eventual sale price of 420k. Obviously your estate agent did you a huge disservice by lowering the probate valuation. The CGT is due and payable by each of the 4 beneficiaries in the current tax year by 15th December 2015, though each has a personal exemption of 1,270. Thus the calculation would be: 420,000 - 350,000 = 70,000 @ 33% = 23,100 /4 = 5,775 - 1270 = 4,505. Each beneficiary's net CGT payable would be 4,,505 in the current tax year by 15/12/2015. I am unsure what other deductions might be allowable (valuation fee, estate agent's commission, etc.).

 

[Jon Snow]

I am also in a similar situation looking for some answers.
As far as I can make out (relevant to your situation) CGT is payable at 33% on the gain between the probate figure of 350k and the eventual sale price of 420k. Obviously your estate agent did you a huge disservice by lowering the probate valuation. The CGT is due and payable by each of the 4 beneficiaries in the current tax year by 15th December 2015, though each has a personal exemption of 1,270. Thus the calculation would be: 420,000 - 350,000 = 70,000 @ 33% = 23,100 /4 = 5,775 - 1270 = 4,505. Each beneficiary's net CGT payable would be 4,,505 in the current tax year by 15/12/2015. I am unsure what other deductions might be allowable (valuation fee, estate agent's commission, etc.).

The 1,270 comes off the gain, not the tax.

So each beneficiary has 17,500 of the gain, minus 1,270 (assuming they don't have any other chargeable gains in the year), leaving 16,230 @ 33% = 5,355...