{"id":3112,"date":"2021-07-28T15:32:11","date_gmt":"2021-07-28T14:32:11","guid":{"rendered":"https:\/\/cloud9accountingteam.co.uk\/?p=3112"},"modified":"2021-07-28T16:38:40","modified_gmt":"2021-07-28T15:38:40","slug":"selling-a-property-post-death-is-there-a-capital-gains-tax-charge","status":"publish","type":"post","link":"https:\/\/cloud9accountingteam.co.uk\/sk\/selling-a-property-post-death-is-there-a-capital-gains-tax-charge\/","title":{"rendered":"Selling A Property Post Death \u2013 Is There A Capital Gains Tax Charge?"},"content":{"rendered":"

Selling A Property Post Death \u2013 Is There A Capital Gains Tax Charge?<\/strong><\/p>\n

For capital gains tax purposes, there is a tax-free uplift to the market value at the date of death, irrespective of whether any inheritance tax is payable at the estate. This effectively resets the base value for capital gains tax purposes going forward.<\/p>\n

Many estates include a property, whether a main home, or investment properties as well. Where these are sold post death, the issue of whether a capital gains tax liability arises will need to be considered.<\/p>\n

Who is selling?<\/strong><\/p>\n

Where a property that forms part of the deceased\u2019s estate is to be sold, the outcome is different depending on whether the executors or administrators are selling the property, for example, to realise cash to distribute to the beneficiaries, or whether legal title has been transferred to the beneficiary\/beneficiaries, who have decided to sell.<\/p>\n

Sale by executor or personal representative<\/strong><\/p>\n

Where a property is sold by the executor or personal representative following the deceased death, the estate will be liable for any capital gains tax.<\/p>\n

Executors collectively are entitled to a single annual exempt amount for disposals in the tax year in which death occurred and the two following tax years. After this, there is no annual exempt amount to mitigate any capital gain. Any chargeable gain on a residential property (after deducting any available annual exempt amount) is charged at the higher residential rate of 28%.<\/p>\n

Chargeable gains on residential property must be notified to HMRC within 30 days of completion. The associated capital gains tax should be paid in the same time frame.<\/p>\n

What about the main residence exemption?<\/strong><\/p>\n

In certain situations, a post-death disposal by the personal representatives may benefit from the main residence exemption. This is the case where:<\/p>\n