Capital Gains Tax to Pay on Estate Probate Case Study

24 October 2016

Client Situation

Mr C contacted our Probate Advisory team to discuss the Estate of his late sister, Miss C, whose funeral had been arranged with Co-op Funeralcare. Mr C advised us that his sister had died without making a Will.

Mr C was Miss C’s closest surviving blood relative and the sole beneficiary of her Estate. After a meeting with one of our experienced Probate Consultants, Mr C asked us to deal with the administration of Miss C’s Estate on his behalf.

The Estate was reasonably straightforward, but there was some Capital Gains Tax to pay before the Estate could be finalised and paid out. This was because Miss C’s property was sold for significantly more than it was worth at the date of her death.

With our Probate Complete Service we take full responsibility for obtaining Grant of Probate and dealing with the Legal, Tax (not VAT), Property and Estate Administration affairs*.

How We Helped

Our Probate Solicitors acted for Mr C under a Power of Attorney and dealt with every aspect of the administration of Miss C’s Estate, including obtaining the Grant of Probate from the Probate Registry.

When the property was sold, we prepared a detailed calculation of the Capital Gains Tax that needed to be paid from the Estate, and we made sure that we claimed all available deductions and allowances so that the tax bill was kept to a minimum.

We sent the Capital Gains Tax calculation to HM Revenue & Customs (HMRC) and they agreed it without raising any queries. We paid the Capital Gains Tax out of the Estate funds and HMRC wrote to us to confirm that the payment had been received and that the Estate’s tax affairs had been finalised.

We then prepared Estate accounts for Mr C to approve and, once he had done so, we paid out his inheritance and completed the administration of the Estate.

The Outcome

Mr C was pleased to receive his inheritance and to know that the administration of Miss C’s Estate had been handled correctly by our team of Probate Solicitors and specialist Case Handlers.

Capital Gains Tax can be complicated, and there can be harsh financial penalties if mistakes are made, so Mr C was glad to have the peace of mind of knowing that HMRC had sent us a formal letter confirming that everything had been dealt with correctly.

*We can also pay all the costs of a Co-op Funeralcare funeral, providing the Estate owns sufficient assets which can be sold in due course to repay our costs.

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