Malcolm Finney looks at when personal representatives are entitled to capital gains tax principal private residence relief.
Personal representatives (PRs) are treated for tax purposes as a single and continuing body of persons. Their residence status is the same as that of the deceased at the time of the deceased’s death.
PRs are subject to capital gains tax (CGT) at the rate of 20%, except for gains arising on residential property when the rate is 24% (for 2024/25; previously 28%). PRs are entitled to an annual exempt amount of £6,000 (for the tax year 2023/24) reduced to £3,000 (for the tax year 2024/25) albeit only for the tax year of the deceased’s death and the immediately following two tax years.
PRs acquire the assets of the deceased at their market value at the date of death, effectively giving rise to a tax-free CGT uplift for the deceased’s assets. Any gain arising
