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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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my mum sold some land in 2013 but hasn't paid CG tax on it

Resolved Question:

my mum sold some land in 2013 but hasn't paid CG tax on it She has now died do I as her executor sort this out with HMRC before doing the inheritance tax form
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.

Hi

Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.

I am sorry to hear of your loss, and in answer to your question, Yes - I am afraid you will, and I would contact HMRc to asl them to issue the appropriate years self assessment tax retirn on which you will have to declare ALL mums income for5 that tax year (so any pensions, and sources of income along with any savings and investments along with this gain)

However, so we can be sure that you even need to go to all this fuss (as there is an exwmption allowance each year so there may be no tax charges arising) can you advise

1) the date this land was sold and how much for

2) How long the land had been owned for and its purchase price

3) Whether just in Mums name

4) Whats cost 9such as legal or estate agent costs there were to buy and sell)

I can then advise further

Thanks

Sam

Sam, Accountant
Category: Tax
Satisfied Customers: 13778
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Hi

It was sold in February 2013 for £127000.00.

It was left to her in 1986 by her mother in law.

Yes just in her name.

Fees to estate agent and auctioneers £2736.00

Apart from this only her state pension

Customer: replied 2 years ago.

Hi Sam I'm not sure if you got my answer. I'm finding it difficult to keep logged in.

Expert:  Sam replied 2 years ago.

Hi

Thanks for your response aqnd I am sorry to hear you are having difficulties staying logged in, but you should also receive an email alerting of you my response.

Do you know how much the land was valued at when your mother inherited it in 1986

But I can advise there will be a capital gain and this will apply to the tax year 2012/2013

The gain will be the sale price £127, 000, less the value at the inherited date less the costs to buy and sell

Then the first £10,600 is exempt and any remining gain at 18% or 28% or a ix of both (this is determined by how much unused basic rate band there is)

So you need to alert HMRC of this gain, and it may well be that id your mother only had state pension then there is no longer a tax records held by HMRC - if this is the case, then let me know and I cana dvsie how to register for self assessment to declare this gain

Thanks

Sam

Customer: replied 2 years ago.

Thank you

I think I can still access this as she was on self assessment as the land was rented out, but hasn't been for the last 5 years. Would this flag up if I was just to go for inheritance tax or am I entering a minefield?

Expert:  Sam replied 2 years ago.

Hi

Thanks for your response

You may find that the self assesment record has become inactive as its been so long since there was rental income - let me know if thats the case.

I am sure you can appreciate that I can ONLY advise that you should declare this gain (or I would not be doing my job properly!) if you choose to take that chance and not make this declaration - or work on the assumption this has not been declared then HMRC could pursue for this tax - but with Mu havening passed away - would have no further recourse to take this up.

BUT as this land DID generate rental income - it is on HMRCs radar so to speak - so the decsion has to be yours to make,

Thanks

Sam

Customer: replied 2 years ago.

Thank you, ***** ***** see if it will log on

Many thanks for your help, much appreciated.

Expert:  Sam replied 2 years ago.

You are most welcome

Thanks

sam

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