Probate and capital gains

[Xol]

I'm an executor with the solicitor dealing with probate on both my parents' estates. When my mother died some time ago, it appears they made a bit of a cock-up in transferring some shares she had into the executors' names and then my father's. When it came to dealing with my father's estate and they tried to cash in the shares, they couldn't. They have said they think the only way of dealing with this will be transferring them into my name as part of my share of the estate and I will then have to decide what to do with them.

Frankly it's a pain in the neck as shares are just not my thing and I will presumably have to pay someone to advise me and, if necessary, help with the sale of the shares. I've been told that if or when I sell I will have to declare it for capital gains tax purposes, using the value now as the probate value.

Can I ask whether that sounds right? I'm assuming the inheritance itself doesn't count for CGT purposes - are they saying I just have to declare this if they are sold at a profit?

I'm thinking of suggesting a refund to the estate on some of the costs the solicitors have charged for this, and that I should be entitled to some sort of deduction from the value of the shares when assessing my share of the estate to reflect, at the very least, the costs of taking independent financial advice and my time and hassle. I don't want to get into an argument about it, life is too short; however, the solicitors have really not been efficient and seem to charge and arm and a leg every time they touch the file.

Yes when you take ownership of the shares, a value will be attributed to them from the estate. When you sell the shares you will be subject to capital gains tax on the difference between the slaes price and the probate price.

You might not end up paying anything if you sell them right away

You get an annual allowance for CGT I think. From 1 April 2024 it’s £3000 I believe so just sell once you have made something but not £3000.

Thanks so much. If I sell them immediately for less than a £3K profit (which is inevitable) am I right in thinking I don't have to declare anything for CGT?

Is there an easy way to sell without incurring any brokers' fees or whatever you call them?

You can tell I'm financially illiterate with these things, can't you.

I have to be honest and say I don’t know. We have a financial adviser and our shares are sheltered in ISAs. We don’t personally buy or sell. I would look at MSE, Money Saving Expert, run by Martin Lewis. They are set up to give consumer advice on finance. You might find a suitable answer there.

Depends on the sale proceeds - if over the reporting threshold, you still have to report on a tax return even if the ban is under the CGT annual allowance.

To correct a couple of things on this thread...

The annual allowance for CGT is currently £6,000, but it will go down to £3,000 in April.

The reporting limit is £50,000. If the shares sell for less than this, you won't have to report the sale.

There are a number of services that allow you to sell online, assuming the shares are traded on the stock exchange. There will be a fee, but some services charge very low fees.

I assumed the op would not be able to sell immediately. Hence £3000 figure quoted. Depends if she hangs onto the shares for a profit or not.

Thanks again for the responses. My first instinct is to sell quite quickly, if only to avoid the hassle, but I guess I ought to get some advice as to whether I'm better off hanging on to them and taking the income. So I suppose I'd better talk to an IFA anyway.

You don't need to take financial advice to sell shares. There will probably be selling charges, which will depend on where they are registered. It sounds like you just want rid of them, so a one off selling fee and you are done.