CGT for Personal Representatives UK (2026): Selling Estate Assets

Yes — when personal representatives (PRs) sell assets belonging to the estate during the administration period, they may be liable to CGT on any gain above the base cost (the probate value, i.e. the market value at the date of death). PRs act in a representative capacity and are treated as a separate taxable entity from both the deceased and the beneficiaries for CGT purposes during the administration period. The administration period begins on the date of death and ends when the estate is fully administered and assets are transferred to beneficiaries. Any disposal of estate assets by the PRs during this period — selling investments, selling a property that was not the deceased's main residence, selling a business — is assessed for CGT at the PR level. PRs report CGT on self-assessment using a trust and estate tax return (form SA900). This is distinct from the CGT position of a beneficiary who later sells an asset they have inherited — the beneficiary's base cost is the value at the date of assent (transfer from the estate to the beneficiary), not the original probate value.

The base cost for CGT when PRs dispose of an asset is the market value at the date of the deceased's death — the probate value agreed with HMRC (or the open market value if no formal probate valuation was needed for IHT purposes). This is the 'uplift to probate value' effect: all pre-death gains on the asset are extinguished; the PRs start from a fresh CGT base cost equal to the probate value. For example, if the deceased held shares bought for £10,000 that were worth £50,000 at death, and the PRs sell them for £55,000 during administration, the CGT gain is only £5,000 (£55,000 − £50,000 probate value), not £45,000. The pre-death gain of £40,000 is permanently extinguished for CGT purposes — neither the deceased, the PRs, nor the beneficiaries ever pay CGT on it. This base cost uplift is one of the most significant CGT advantages of holding assets until death, and it applies automatically without any election.

Yes — personal representatives are entitled to the full CGT annual exempt amount (AEA) for the tax year in which the deceased died and for each of the two following tax years. As at 2024/25 and 2025/26, the CGT AEA is £3,000 per year. PRs do not get the AEA in tax years after the second following year — this is a time-limited allowance designed to facilitate the administration of most estates within three years. So if the deceased died in the 2024/25 tax year, the PRs have the AEA for 2024/25, 2025/26, and 2026/27 — potentially up to £9,000 in total exempt gains across the administration period. After the third tax year, any estate disposals by the PRs no longer benefit from the AEA. This is another reason to complete estate administration promptly.

Personal representatives pay CGT at the higher rates — the same rates that apply to trustees and to individuals in the higher or additional rate bands. For the 2025/26 tax year: 24% on gains from residential property (not the deceased's main residence, which benefits from private residence relief during a deemed ownership period); 24% on gains from other assets. The lower 18% rate (for basic-rate taxpayers) does not apply to PRs because PRs are treated as higher-rate payers for CGT regardless of the quantum of the gain. There is no income-related CGT rate calculation for PRs as there is for individual taxpayers. For gains on the deceased's former main residence sold by the PRs, private residence relief (PPR) is available for a reduced period: the last 9 months of deemed ownership qualify for PPR (extended to 36 months if the property is occupied by a beneficiary who has a right to occupy under the will or on intestacy). After the PPR period, the gain attributable to the excess period is taxable at 24%.

Hold-over relief under TCGA 1992 s.260 (for chargeable IHT events) and s.165 (for business assets) is generally available to trustees. However, for personal representatives, the position is more limited. When PRs assent (transfer) assets to beneficiaries, this is treated as a no-gain/no-loss disposal under TCGA 1992 s.62(4) — there is no deemed disposal at market value; the beneficiary simply inherits the PR's base cost (which is the probate value). This means no CGT arises on the assent itself. As a result, hold-over relief is rarely needed for the assent; the no-gain/no-loss rule achieves a better outcome (no immediate CGT and the beneficiary gets a probate-value base cost). If PRs sell an asset to a beneficiary (rather than assenting it), that is a disposal at market value and CGT applies in the normal way. Hold-over relief under s.165 is available to PRs selling or gifting qualifying business assets to beneficiaries during administration, in the same way as any other individual.

If the estate sells quoted shares within 12 months of death at below the probate value (the value at which they were included in the IHT estate), the executor can substitute the sale price for the probate value — reducing the IHT estate retrospectively. This is the 'loss on sale of shares' relief under IHTA 1984 s.179. The effect is to reduce the IHT charge on the estate by refunding IHT on the value by which the shares fell between the date of death and the date of sale. To claim: the PRs must have sold all qualifying investments and elect to use s.179 relief on the IHT account (or by amending the IHT400 return after the sale). The election must be made within 5 years of the first IHT payment deadline (usually 5 years from 31 January after the tax year of death). The relief prevents the unfair outcome where the estate pays IHT based on the date-of-death value but then actually realises less. From a CGT perspective, a sale below probate value creates a CGT loss for the PRs — this loss can be offset against any CGT gains realised in the same or later tax years during the administration.

Yes — if the estate has CGT gains during the administration period, the PRs must report and pay CGT to HMRC. Unlike individual taxpayers who can use the 60-day residential property return for property disposals, PRs report CGT on the estate's self-assessment tax return (form SA900 — Trust and Estate Tax Return) filed annually for each tax year in which the estate has a CGT disposal. HMRC issues a Unique Taxpayer Reference (UTR) for the estate when it is first registered for self-assessment. PRs should register the estate for self-assessment promptly if there are likely to be CGT disposals. The CGT is payable by 31 January after the end of the tax year in which the disposal occurred. For residential property sold by the PRs during administration, the 60-day reporting and payment requirement does not apply to PRs — they report on the annual SA900 return. However, if a property subject to PPR (former main residence) is sold, the PPR is applied on the SA900 and only any remaining gain is taxable.