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TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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Hi, my brothers and I have today exchanged contracts on our

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Hi, my brothers and I have today exchanged contracts on our deceased mitger's retirement flat. She died 4 years ago and we went through probate etc. We have got £124k for it.
About 3 months after death, we tried to sell her flat which was valued at £140k but we failed to find a buyer. She bought it for £185k about 3 years previously.
My question is: is it likely that we will have to pay capital gains on this and if so (or even if not), how do we find out ie who do we inform, if anyone? Thanks
Hello and thank you for allowing me to assist you.
You pay any Capital Gains Tax through the Self Assessment system and it is calculated as part of your Self Assessment tax return.
When you sell or otherwise 'dispose of' an asset you may make a capital gain or loss. If you already complete a Self Assessment tax return, you may also need to tell HMRC when you sell or dispose of your assets. You have to give this information even if you have no Capital Gains Tax to pay.
When someone dies, the assets they own pass to the person looking after the estate. This person is known as the 'executor' or 'personal representative'. There's no Capital Gains Tax to pay at that time, even though the assets have changed hands.
When you sell or dispose of an inherited asset, you may be liable to Capital Gains Tax on any profit or gain you make.
You have the valuation of the asset at the date of death. Use this value as the cost of your asset to work out your gain or loss. You have a loss because you sold for less than the valuation when she passed.
You can show losses on your Self Assessment tax return.
If you don't normally complete a Self Assessment tax return, you should claim the loss by writing to HMRC.
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Customer: replied 3 years ago.
Thanks very much. I don't suppose you are able to text this to me or email it so I can pass it on? I foolishly put the question on my iPad and have no means of printing it etc!
Hi Liz,
It is not erased so when you log back in it is under your MY QUESTIONS section. I would certainly e-mail it to you if I were allowed.
You can log in from another source so you can print.
Please remember to rate my service excellent once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!
Customer: replied 3 years ago.
Thanks. As the proceeds of the sale are being distributed 4 ways, the fourth being divided between my mothers grandchildren, do they/we all have to show the 'loss' separately? Will one letter to hmrc explain it to them? This might be hard for you to answer!
You would each need to report your own losses and each contact HMRC for self assessment.
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