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Capital gains tax during administration


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024

Capital gains tax during administration


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024
imgtext

This guidance note explains how capital gains arising during the administration period will be treated for capital gains tax purposes. This includes deciding whether the administration period has ended and establishing the base cost for capital gains tax purposes. It also explains the special deduction available for personal representatives to represent the cost of obtaining probate, the availability of principal private residence relief and other loss reliefs available for personal representatives.

Capital gains made by personal representatives

When a person dies, the assets in the deceased’s estate are deemed to be acquired by the personal representatives (PRs) for a consideration equal to their market value at the date of death. See the Deceased’s capital gains tax position guidance note.

The PRs are treated for CGT purposes as being a single and continuing body of persons, which has the same domicile (to 5 April 2025) and residence that the deceased had at the date of death. Therefore even if the personal representatives are all personally UK resident, the estate will be treated as a

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  • 25 Apr 2025 07:02

Home/ Tolley Tax Guidance/ Trusts and Inheritance Tax / Advising on estates — income tax and CGT

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