How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TaxRobin Your Own Question

TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 14458
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

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.
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 14458
Experience: International tax
TaxRobin and other Tax Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions