What are the Capital Gains Tax rules?
When you take control of the deceased’s assets, they are treated as if you had acquired them at their market value at the date of death. When you transfer an asset to a beneficiary under the will or under the rules of intestacy, you are not treated as disposing of it for Capital Gains Tax purposes. You have no chargeable gain or allowable loss on that disposal. Instead, the beneficiary is treated as if they had acquired the asset on the date of death, at its market value on that date. Sometimes you may need to sell assets during your period as personal representative, for example, to raise money to pay Inheritance Tax or to settle cash legacies. If so, you will have to declare any chargeable gains you realise on estate assets, and pay Capital Gains Tax out of estate funds. Capital Gains Tax is chargeable on the personal representative only on gains arising on estate assets during the period of administration. The rate of Capital Gains Tax on personal representatives is 18 per cent for
When you take control of the deceased’s assets, they are treated as if you had acquired them at their market value at the date of death. When you transfer an asset to a beneficiary under the will or under the rules of intestacy, you are not treated as disposing of it for Capital Gains Tax purposes. You have no chargeable gain or allowable loss on that disposal. Instead, the beneficiary is treated as if they had acquired the asset on the date of death, at its market value on that date. Sometimes you may need to sell assets during your period as personal representative, for example, to raise money to pay Inheritance Tax or to settle cash legacies. If so, you will have to declare any chargeable gains you realise on estate assets, and pay Capital Gains Tax out of estate funds. Capital Gains Tax is chargeable on the personal representative only on gains arising on estate assets during the period of administration. The rate of Capital Gains Tax on personal representatives for 2010-11 is 18 p
