Capital Gains Tax on Inherited Property

Discussion in 'Accounts & Finance' started by Chloe Brown Summers, Feb 18, 2021.

  1. Chloe Brown Summers

    Chloe Brown Summers UKBF Contributor Free Member

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    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.
     
    Posted: Feb 18, 2021 By: Chloe Brown Summers Member since: Jul 18, 2018
    #1
  2. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

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  3. Talay

    Talay UKBF Big Shot Free Member

    3,924 857
    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 ?
     
    Posted: Feb 21, 2021 By: Talay Member since: Mar 12, 2012
    #3
  4. STDFR33

    STDFR33 UKBF Big Shot Free Member

    4,614 1,232
    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.
     
    Posted: Feb 21, 2021 By: STDFR33 Member since: Aug 7, 2016
    #4