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My mother died 4 years ago and her estate was shared ways equally

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My mother died 4 years ago and her estate was shared ways equally between myself ,my brother and my sister and her grandchildren. However we didn't sell her flat as at that time with the property slump it wouldn't sell and we decided to rent it out. We put it on the market again in May last year and sold it in October. The value of the house at the time of her death was probably about the same as the price we sold it for, but the value when she purchased it was a lot higher than the sale price. Can we claim a capital loss based on the price she paid for it or is it based on when she died i.e. when we inherited it.
Also if we can claim any loss how would it work in terms of all the 4 parties getting their share?
Thanks
john
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

As you inherited the flat at the death of your mother, your cost base is the value of it at the time of death and not the price paid by her when she bought it.

As far as calculation of any gain or loss on sale, it is the difference between the sale price and its valuation at the time of death. This difference is divided by 4 to give you your share.

If this shows a loss on sale, then you should report it when filing your tax return. This way capital loss is available for offset against future capital gains and the loss is not lost.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk, Chartered Certified Accountant
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Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Expert:  taxadvisor.uk replied 2 years ago.

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