Capital Gains Tax on Inherited Property

We are selling a property inherited a few years ago.

Do we pay CGT from the probate valuation or on the outstanding mortgage on date of death?

Thanks all.

 

Your base cost for CGT is probate value which should be the market value at the date of death.

 

Not sure this is as simple as it seems.

If it was worth £500k but had a £200k mortgage then the value of the asset is £300k, not £500k as presumably the probate value was the net value ?

 

The mortgage is a liability settled by the estate.

It doesn’t change the property valuation at the time of probate and that’s the value for CGT purposes.