Selling an inherited home: probate, confirmation and tax in the UK

First question: who owned the home, and how

See joint tenants or tenants in common to check how a property is held.

Getting probate in England and Wales: the steps

1. Check probate is needed and who can apply. With a will, the named executors apply (up to 4 on the application). Without a will, the closest living relative applies as administrator, usually the spouse or civil partner, then children aged 18 or over. An unmarried partner cannot apply.
2. Value the estate and check Inheritance Tax. Even with no tax, you need the values for the application. If full details must be reported, send form IHT400 within 12 months of the death, before applying. If tax is due, you usually start paying before the grant, and HMRC sends a code you need to apply. See inheritance tax on a home.
3. Apply online or by post (form PA1P with a will, PA1A without). You send the original will, which becomes a public record.
4. Wait for the grant, usually within 12 weeks, longer if more information is needed.

Probate fees (GOV.UK):

Help with fees may be available on a low income or certain benefits.

Selling the home after the grant

GOV.UK’s selling guide lists probate among the extra steps when selling for someone else. To sell to a buyer, the personal representative transfers the property and gives the buyer an official copy of the grant. To transfer to a beneficiary instead, HM Land Registry needs forms AP1 and AS1 (assent), the original or an official copy of the grant, identity checks (ID1) and a fee. A grant issued outside the UK must be resealed or replaced by a UK grant.

Council tax while the home is empty (England). GOV.UK says that if you are selling for an owner who has died, no council tax is due until probate while the property stays empty, and an exemption may follow for up to 6 more months. After that, a second home or empty home premium can be waived for up to 12 months after a grant of probate: see council tax on second and empty homes.

Tax when you sell an inherited home

GOV.UK: you do not pay Stamp Duty, Income Tax or Capital Gains Tax when you inherit a property. Later:

• Capital Gains Tax applies if you sell for more than it was worth and it is not your main home. If you do not know the Inheritance Tax value, GOV.UK says to use the market value when working out the gain.
• If you sell property belonging to the estate, the information goes into the estate’s report to HMRC.
• If inheriting means you own two homes, you must tell HMRC which is your main home within 2 years; otherwise HMRC decides when you sell.
• Most UK property sales with Capital Gains Tax to pay must be reported and paid within 60 days.
• If you rent it out meanwhile, the rent can be taxed.

Rates and the allowance are in Capital Gains Tax on a home.

Scotland: confirmation

In Scotland the executor applies for confirmation instead of probate. The Scottish Courts and Tribunals Service says:

• an estate is small if the total value of money and property is £36,000 or less, counted without deducting debts such as funeral costs;
• for a small estate, the sheriff clerk can help prepare the inventory (form C1), and there is no statutory court fee for issuing confirmation, though copies carry fees;
• larger estates follow a separate procedure that Payotte did not review for this guide.

Northern Ireland

nidirect says a grant of probate is “almost always needed” when the person who died owned property or land in their own name. A court fee applies when assets are worth more than £10,000, based on the net value of the estate; the nidirect page links to the fee schedule without giving the amount, and Payotte did not open a current schedule. Up to 4 personal representatives can apply, online or on paper, through the NICTS Probate Office in Belfast or Londonderry.

Which professional to consult

A probate practitioner or solicitor can apply for you; GOV.UK notes that applying yourself can be cheaper. A conveyancer handles the sale or the transfer to a beneficiary, and a valuer can give the date-of-death value used for Inheritance Tax and later for Capital Gains Tax. An estate agent markets the home once the grant is in hand.