You mean CAT which applies to all gifts and inheritances. CGT only applies if a house went up in value between the date of valuation by the executor and the date of sale.Executor has sold home and divided proceeds among 3 children advising us to each make our own CGT return.
Unfortunately, that's incorrect. Your parents' house can't be treated as a child's PPR for the purpose of avoiding CAT. The only exception is the Dwelling House Exemption, and they would have to have remained living in the house for six years after inheritance and, since the rules changed last year they would also have to be a dependant. (More info [broken link removed]). The sibling who lived in the home owes CAT, same as the other siblings. (However, check the exemption amounts for CAT -- it could be that none of you owe any tax, depending on the value of the house).As the sibling who lived in family home, I presume she has no liability for CGT (has used the 1/3 share to purchase another property to live in) ... and the sibling who has purchased an alternative property makes no return as it was their principal residence and they have simply used the funds to purchase an alternative residence.
The executor was responsible for making sure any taxes and debts owed by your mother were paid out of the estate. You are responsible for your own CAT payment. (More info here).Yet I appear to be also getting advice from a third party that the executor should have paid the CGT before distributing the estate.
The administrator sold house but maintains that on legal advice the estate less proceeds of house sale had already been distributed so therefore the proceeds from house sale can be taken as distributed and each beneficiary is responsible for CGT on gain arising from uplift in value.
What does this mean? Is the valuation date not the date of death?If the beneficiaries sold it then its the value increase the valuation date and the date of sale. The beneficiaries have a disposal.
What if the beneficiaries are also the executors of the estate and they did a Personal Probate Application? However, it's the deceased PPS number on the house sale contract ? Logic tells me it doesn't make a difference - the beneficiaries are still the beneficiaries regardless.Two avenues if the administrator sold the house they signed the contract and put the estates number on the contracts. So the sale took place by the estate.
If in fact the three siblings signed the contracts and their PPS numbers were on the contracts the happy days, the person living in the house claims PPR as the lived in the property for their period of ownership. Gain: Proceeds - valuation date value.
The OP said in his first post that the house has been sold and the proceeds distributed."Therefore the proceeds from the house sale can be taken as distributed", how could the proceeds of the house sale be distributed if the house had not been sold?
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