Mrs B died in October 2014 intestate. She left a husband and a daughter from her first marriage. The estate included a house in her sole name valued for probate at £290k. The total estate at date of death was sworn at £380k. Mr B died in January 2015, also intestate. He left three children, all US citizens and US domiciled. Due to a probate action initiated by Mrs B’s daughter, both estates have been held in abeyance until recently, when the matter settled. The house in Mrs B’s estate is currently going through a sale at an agreed price of £390k, so a gain of £100k. The CGT allowance of Mrs B is unavailable to claim due to the passage of time which has elapsed since her death. Ordinarily, I would consider appropriating the property to the residuary beneficiaries before completion, to make use of their own CGT allowances. However, the beneficiaries of Mrs B’s estate are Mr B deceased’s estate, and Mrs B’s daughter who receives half of the residue. I have obtained accountancy advice and understand that the US citizens would be able to utilise the individual’s CGT allowance to offset against the gain, however, they are not the direct residuary beneficiaries of Mrs B’s estate. I am wondering if there is any other way of mitigating the Capital Gain in this matter?
Birchall Blackburn Law