Do I pay CGT on an inherited house sold immediately?

Usually very little or none, because the base cost is the probate value. Only an increase above that value, less costs, is taxable.

Is Inheritance Tax and CGT both charged?

Inheritance Tax is charged on the estate at death. CGT only applies to any gain arising after the date of death, so the same growth is not taxed twice.

What if the probate value was too low?

A low probate value increases your later gain. HMRC may challenge values, so a RICS valuation at death is strongly recommended.

Capital Gains Tax on inherited property

When you inherit a property, you are treated as acquiring it at its market value on the date of death. CGT is only due on any growth after that date.

Updated for the 2026/27 tax year · Reviewed against HMRC guidance

Base cost

Probate value

Rates

18% / 24%

Report within

60 days

Your base cost is the probate value

Under TCGA 1992 s.62, beneficiaries acquire assets at market value at the date of death. Use the value agreed for Inheritance Tax (or a professional valuation) as the purchase price in our calculator.

Sales by the executors

If the personal representatives sell the property during administration, the estate pays CGT at 24% and has its own £3,000 exempt amount for the year of death and the following two years.

Executors can deduct a proportion of probate costs using HMRC's published scale.

Living in an inherited home

If you moved in and made it your main residence, Private Residence Relief applies to that period, plus the final 9 months of ownership.

Frequently asked questions

This guide is general information based on the Taxation of Chargeable Gains Act 1992 and HMRC guidance (including HS283). It is not personal tax advice — for complex cases speak to a qualified tax adviser.