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 bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4970
Type Your Tax Question Here...
bigduckontax is online now

Hi Having completed Probate in Febuary, I am selling the property

This answer was rated:

Hi Having completed Probate in Febuary, I am selling the property involved this weekend. Obviously house prices have risen recently. Their was no inheritance liability as the bulk of the estate is going to charity. Are the administrators of the estate liable to Capital Gains Tax at 40% on the difference between, selling price and probate price. Thanks
Hello, I'm Keith and happy to help you with your question.

In a word no, but they are liable for the gain between the probate value and the selling price less costs. Tax is at 28%, but the Annul Exempt Allowance (AEA) of 10K is available to offset the gain. That's the deceased's AEA not yours.

Hope I have thrown some light on your question.

Customer: replied 3 years ago.

Thank you for that, how do the administrators settle the liability to the revenue. Are there forms to complete?

There may well be forms to complete; have a look at HMRC advice site 'Tax returns for personal representatives' In essence:

Self Assessment tax return

The administrator may need to complete a tax return on behalf of the person who has died.

To find out if one is needed form R27 should be completed.

If a tax return, is needed HMRC will send one to the administrator at the end of the tax year in which the person died. This return will cover the period from the 6 April to the date of death. The tax return can be requested earlier if it is desired to sort out the deceased's tax affairs sooner.

Trust and Estate Return

The personal representative is responsible for reporting any income received, and any gains or losses made, during the administration period. This period starts on the day the person died and ends when their estate is fully dealt with. HMRC will just tell the administrator what information they need. But if they do send a tax return it must be completed and send it back.

I do hope I have helped you, independent professional advice may be needed. Any solicitor would include it in his handling of the deceased's estate.

Please be so kind as to rate me before you leave the Just Answer site.
Customer: replied 3 years ago.

Hi Thanks for your help, I have been away for a few days and there is a lot for me to digest. Please bear with me for a few days.

No problem, I will be delighted to help. On Tuesday, however, I won't be available, but will be thereafter.

Please be so kind as to rate me before you leave the Just Answer site.
bigduckontax and other Tax Specialists are ready to help you
Thank you for your support.