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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I am an executor of an estate as well as a beneficiary & sold

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I am an executor of an estate as well as a beneficiary & sold a property which had not been transferred to my name.
I have declared the capital gain through my self assessment return.
Did I take the correct action.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. On death there is no Capital Gains Tax (CGT), all assets being aggregated and exposed to Inheritance Tax (IHT). If a capital gain is made by the executors following a disposal above the probate value then the estate has the same rights and allowance as the deceased would have had for two years following death viz: 'The full amount of the annual exemption is allowed to personal representatives: • for the period from the date of death to the following 5 April (no matter how short this period is), and • for the two tax years following the year of death. Where gains arise in a later year, no annual exemption is due.' All this is set out in HMRC Help Sheet 282 which you can find here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323671/hs282.pdf No liability attaches to the executor and you should not have declared the gain on your self assessment return. After payment of any CGT due the estate may be distributed should surplus funds be available therefor. You should write to your tax office and seek to amend your personal tax position by correcting this mistake. I do hope that you find my reply of assistance.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.