Can anyone take me through this please - inherited property and capital gains tax

[pastypirate]

Tia
I have inherited a small house outright which I plan to keep as a holiday let on a full time basis so comes under 'furnished holiday let' for tax purposes. Nothing sneaky as we won't be using it ourselves ever.
The advice I am getting is to set up a Ltd company. Fine I can do that. Accountant thinks I should effectively sell the property to my company and thinks I need to do this.
Solicitor says I can do that but liable for capital gains tax. Have I understood this correctly that if I do this I am liable if the house has increased in value and only on the difference. House was valued for probate in January for let's say £150k so I assume I need a new valuation and it might go up to £160k at a push - therefore I pay the cgt on £10k which is at 20% for me I think so £2k??

Is this correct or is it on the whole amount because I inherited it??

I am not liable for inheritance tax as estate in total is below the threshold.

I can't work out if I need a better accountant!

That's roughly it but you get the first £3k of gain (from 1/4/24) free of tax so it will be the tax on the gain less £3k

Also might be 18% not 20% so a few more £££ saved.

Might be 18 or 28% tax on a residential property (depends on your tax rates)

But yes in a nutshell your capital gain is the difference between the sale price and the purchase price. And the purchase price in this case is the probate value

There is a bigger capital gains tax allowance this year -t's 6k (although next years allowance might change in the budget) so you might want to do this after the budget but before the next tax year starts.

CGT Allowance drops to £3k from April 24 so probably unlikely OP will get things done by then.

Thank you everyone - this is a steep learning curve but I've convinced myself I can learn it like anyone else.

I do t yet have grant of probate so think you are right