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If the flat is sold by the estate before being put into your name, then CGT will only be payable if it is sold for at least £11,000 more then the probate value. The first £11,000 of gains made by a deceased estate are exempt in the tax year of death and for each of the next two tax years. Take a look here for more information.If the flat is put into your name, you can sell it and pay no CGT so long as the gain is no more than the annual CGT exemption of £11,000. The probate value will be your cost for CGT purposes.
Hi sorry I'm a little confused by the reply so lets make it easier and use figures. On completing the paperwork for probate, flat was valued at £205k. On putting the flat on the market, it went on at £215. We have an offer at £212k (which we're likely to accept). Now I'm assuming that any costs in selling the flat are not part of this equation (if they are then they are est. at £3.5k). Based on the above, is CGT liable?