CGT on inherited property

[Thingsthatgo]

I am correct in thinking that when someone inherits a property CGT is payable on the amount that the property increases in value in the time between when the property is in the new owner's name and when the property is sold?

Potentially yes, unless it becomes their principal residence. There are annual allowances too.

I assume that if the property had not been the primary residence of the person who left it in their will, then it would be subject to capital gains tax in the normal way? This would be dealt with during probate, along with any inheritance tax.

If it was their primary residence, then you would only have to worry about any increase in value between the time it moved into your name and the time you sold it or moved into it (and any inheritance tax of course)

Thank you. Yes, it was the primary residence of the deceased.
I am not the beneficiary; that is someone close to me and I am just helping out. They were concerned about suddenly having 2 properties and the repercussions (such as insurance and council tax etc).
We are slowly finding out all the info. She intends to sell it, not live in it.

Council tax isn’t paid before probate is granted

let council tax know that you are dealing with the estate etc

after private use granted council tax become payable again

Yes she needs to complete a CGT 60 from within 60 days of a sale

Damn auto correct form not from

CGT is only charged when there is a chargeable event.

Death is not a chargeable event so no CGT is due from the estate.

If and when the new owner sells the property, that will be a chargeable event so CGT will potentially become due then. It will be calculated on the difference between the market value when it was inherited and the sale proceeds, subject to any reliefs and exemptions available at the time.

If the plan is to sell quickly then there may be no increase in value anyway. In today's market there may even be a loss.

We had this situation recently: I inherited a house when a relative died 5 years ago. Another relative lived in the house until this year when the house was sold.
CGT was payable on the difference in value of the house between date of inheritance and date of sale.
I paid this - minus annual allowance- within the 60 day requirement.
All very straightforward.?

Are they selling it straight away ? My understanding from the Land Registry is that it doesn't have to be put into the inheritor's name

What happens if she decides to move into the property and sell her own house? Is there CGT to pay then?