CGT on property sale 8 years after death

Good morning all - bit of an odd one I am mulling over today. Any thoughts welcome as always.!!

H & W divorced.

Ex W remained in property (held as tenants in common)

H died whilst in residential care (2013) leaving thousands outstanding under Deferred Payment scheme.

H’s Will left his estate to his three children and comprised half of the property.

Ex W on benefits and refused to vacate the house

H’s children (under threat of Court proceedings) discharged the outstanding fees.

Ex W has now died.

My question is this - H’s CGT allowance now unavailable as over 2/3 years post death…

Ex W’s PR’s now entitled to sell the property and know half net sale proceeds due to H’s estate.

Ex W’s Beneficiaries obviously have no problems with CGT as uplift to date of death on Ex W’s share.

Is there any way of claiming CGT allowance(s) on H’s share or are his Executors/Beneficiaries stuck with CGT on the half share? My feeling is that appropriation would not help but I am not sure why (probably time limited?)

Is there anything that can be done?

Many thanks

Kathy Melkerts

A couple of thoughts occur to me on this which may or may not help.

Was there a financial settlement in divorce, eg giving the wife a right of occupation which might be construed as a trust? In which case PPR could be claimed on H’s share.

Or, could an appropriation of H’s share to his children be implied on the basis that the administration of his estate has ended?

Diana Smart
Gordons LLP

In the absence of any relevant provisions under, for example, any divorce settlement, on the basis residue of H’s estate has been ascertained presumably the children’s absolute interests are subject to CGT on disposal albeit with annual exemptions being available. If residue has not been ascertained, any disposal will be by H’s PRs and any CGT liability will be theirs with no entitlement to the annual exempt amount.

Malcolm Finney

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