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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I am the executor of a deceased's Estate. I have sold the major

Resolved Question:

I am the executor of a deceased's Estate. I have sold the major asset of the Estate at a substantial gain above the Probate valuation. Can I claim the costs of obtaining probate on the whole Estate as a legitimate cost against the gain, in addition to direct costs eg. Estate Agent fees (for CGT purposes)?
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
Personal representatives are entitled to claim the actual expenditure where this is known. Personal representatives may claim the cost in obtaining a grant of probate against the CGT.
If the fees are not itemized for you in the solicitor statement, HMRC will accept calculations which include deductions for costs of establishing title which are based on a published scale. The scale is published as Statement of Practice SP02/04
https://www.gov.uk/government/publications/statement-of-practice-2-2004--2/statement-of-practice-2-2004--4
You can claim the expenses but it depends on the solicitor fees and if they itemized them for you. If they did not then you look to the value of the whole estate and use the scale.
Customer: replied 2 years ago.

I had already reviewed document SP02/04 but it didn't seem to answer my question - which was why I contacted you. The GBP 8000 limit (on the asset value of >GBP 1 million) is below the actual (itemized) legal fees (GBP13K) associated directly with the sale of the asset but the costs of obtaining Probate are probably around GBP8000. Should I be able to claim both amounts (ie 13K + 8K) against the gain, for the CGT calculation?

Expert:  TaxRobin replied 2 years ago.
You would be allowed to claim the legal fees of the sale in calculating the CGT that are specified. You do not use the scale if you have documentation that shows the fee.
If the specified fee was just in the sale only and the probate fees were in addition to that, then you are limited to the 8000 on probate.
You can use both unless the 13k does not specifically show it was for the sale only. If it could be interpreted as for probate fees too, you can only use the 13k.
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