I am dealing with an estate where prior to the sale of property, there was an appropriation to a number of beneficiaries but not all as they were not all able to consent to the appropriation. The estate therefore retained a share of the property. A CGT return was submitted for the gain on the estate’s share and a small CGT liability arose.
Should the estate’s CGT liability be dealt with as a general administration expense borne by all beneficiaries or specifically allocated against the beneficiaries who did not have shares of the property appropriated to them?
The CGT liability is a general administration expense.
The beneficiaries to whom no appropriation was made will be entitled to a payment to balance up the distribution, such payment being equal to their notional share of the sale price of the property (i.e. before deduction of the sale expenses).
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals