Guide

Capital Gains Tax for Executors and Estates 2026/27

Written by James Whitfield · Updated October 2026 Checked against 2026/27 HMRC rates

Quick answer

When executors (personal representatives) sell an estate asset in 2026/27, capital gains tax is charged at a flat 24% on all assets, with no 18% band.² The gain is measured from the probate value at the date of death, not what the person who died paid. The estate gets a £3,000 allowance in the tax year of death and the next two tax years.¹

Key takeaways

There is no CGT on death. Assets pass to the executors at their market value on the date of death.¹
Executors pay 24% on gains from sales during the administration, the same rate as trustees.²
The £3,000 annual exempt amount is available for the year of death and the 2 following tax years only.¹
A UK home sold by the estate with CGT to pay must be reported within 60 days of completion.³
Passing an asset to a beneficiary before it is sold is not a disposal, and can mean the gain is taxed at the beneficiary's rate (18% or 24%) with their own allowance.¹

Who pays: the estate or the beneficiary?

During the administration period the executors, not the beneficiaries, own the estate's assets for tax purposes. If the executors sell a house, shares or anything else that has gone up in value since the death, the gain belongs to the estate and the executors pay the tax from estate funds.¹

If instead the executors transfer the asset to a beneficiary under the will or intestacy rules, there is no CGT on that transfer. The beneficiary is treated as having acquired the asset on the date of death at its probate value, and any later sale is the beneficiary's own disposal. For that side of things, see our guide to CGT on inherited property.

The 2026/27 rate and allowance for estates

CGT for personal representatives, 2026/27

Rate on all assets, including residential property	24%
Annual exempt amount	£3,000
Years the allowance is available	Year of death + 2 tax years
Base cost of assets owned at death	Probate value at date of death
UK residential property report and payment	Within 60 days of completion

The 24% rate has applied to personal representatives for all disposals since 30 October 2024.¹ There is no basic-rate band for an estate, so a small estate does not get 18%.

The allowance is generous in one way: the executors get the full £3,000 for the period from the date of death to the following 5 April, however short it is, and again in each of the next two tax years. From the fourth tax year onwards an estate that is still selling assets has no allowance at all.¹

Working out the estate's gain

The calculation follows the normal rules, with the probate value standing in for the purchase price:

Sale proceeds, less
the probate value (market value at the date of death, as agreed for inheritance tax where it was "ascertained"), less
costs of sale such as estate agent and conveyancing fees, less
any improvement costs the executors paid (not repairs or general upkeep), less
a share of the costs of establishing title, meaning valuation and probate costs.

Solicitors' bills rarely split out the probate work neatly, so HMRC accepts a published scale for the costs of establishing title, Statement of Practice SP2/04, or the actual cost if you can show it.¹ Beneficiaries cannot claim these costs if they sell the asset themselves later.

Worked example: the executors sell the family home

A mother dies in June 2025 and the house is valued for probate at £300,000. Nobody lives in it after her death. The executors sell it in October 2026 (the 2026/27 tax year, within the allowance window) for £330,000.

Worked example: estate sells the house

Sale price	£330,000
Less probate value	−£300,000
Less estate agent and conveyancing fees	−£6,000
Less share of probate and valuation costs	−£1,500
Gain	£22,500
Less estate's annual exempt amount	−£3,000
Taxable gain	£19,500
CGT at 24%	£4,680

The executors report this on HMRC's UK property service within 60 days of completion.

The alternative: transfer the house to the beneficiaries first

Suppose the house goes to two children equally, one a basic-rate taxpayer with plenty of unused band and one a higher-rate taxpayer. If the executors transfer the house to them (an "appropriation") and the children then sell, each child's base cost is half the probate value, £150,000.

Same sale, made by the two beneficiaries

Each child: half of £330,000, less £150,000, less £3,000 sale costs	£12,000
Less each child's own £3,000 allowance	£9,000
Basic-rate child at 18%	£1,620
Higher-rate child at 24%	£2,160
Combined CGT	£3,780

That is £900 less than the estate's £4,680 here, partly from the second allowance and partly from the 18% rate. The beneficiaries cannot deduct the executors' probate costs.

The trade-off: each beneficiary then has to file their own 60-day return and pay from their own share, and the saving disappears if they have already used their allowance or have no basic-rate band left. Decide before contracts are exchanged, because whoever owns the house at exchange is the seller for CGT.

When the estate sells at a loss

Property and shares sometimes sell for less than probate value. A capital loss made by the executors can only be set against the estate's own gains; it cannot be passed on to the beneficiaries.¹

If the estate paid inheritance tax, there is often a better route. Land or buildings sold at a loss within three years of death (some sales in the fourth year also qualify) can be the subject of an IHT38 claim,⁴ and listed shares or unit trusts sold within 12 months can be claimed on IHT35.⁵ The claim substitutes the lower sale price for inheritance tax, refunding some of that tax, and the sale price then becomes the value for CGT too, so there is no capital loss as well.

If a beneficiary lived in the house

Private Residence Relief is not normally available to executors, because nobody in the estate lives in the property. There is an exception: if, before and after the death, the house was the main residence of beneficiaries who are entitled to 75% or more of the sale proceeds, the executors can claim the relief. If that might apply to you, take advice before the sale.

Reporting and paying the estate's CGT

UK residential property: report within 60 days of completion using HMRC's UK property service, in the estate's name. Unlike individuals, executors do not pay when they submit: HMRC writes with the amount due and how to pay.¹
Other assets (shares, funds, possessions): report through the estate's own tax return, the Trust and Estate Tax Return (SA900), for the tax year of the sale.
The deceased's own gains before death are a separate matter: the executors must settle the deceased's tax for the year of death on their personal return.¹

See the CGT reporting deadlines guide for the 60-day rule and penalties.

Estimate a beneficiary's CGT

Enter the probate value as the purchase price and the beneficiary's income to see their bill at 18%/24%. For an estate sale, apply 24% to the gain above £3,000.

Open the property CGT calculator

Selling a property from an estate? The CGT Survival Pack - £4.99 explains the 60-day property rule, the costs you can deduct and how to report without missing the deadline.

Get the pack →

Frequently asked questions

What rate of capital gains tax do executors pay in 2026/27?

Personal representatives pay 24% on gains from all assets, including residential property. There is no 18% basic-rate band for an estate. This rate has applied since 30 October 2024.

Do executors get the £3,000 CGT allowance?

Yes, for the tax year of death and the two following tax years: one £3,000 allowance per year. From the fourth tax year after the death, the estate has no allowance.

Is the gain worked out from the probate value?

Yes. Assets owned at death pass to the executors at their market value on the date of death, usually the value agreed for inheritance tax. The gain is the sale price minus that value and allowable costs.

What costs can executors deduct from the gain?

Estate agent and conveyancing fees on the sale, improvement costs paid by the estate, and a share of the costs of establishing title such as valuation and probate fees. HMRC accepts its SP2/04 scale for probate costs, or the actual cost.

Do executors have to report a house sale within 60 days?

Yes. If the estate sells a UK residential property and has CGT to pay, the executors must report within 60 days of completion. HMRC then tells the executors how much to pay and how.

Can beneficiaries use a loss made by the estate?

No. Unused losses of the executors cannot be passed to beneficiaries. If the estate paid inheritance tax, a sale of land at a loss within three or four years of death (IHT38) or of listed shares within 12 months (IHT35) may instead reduce the inheritance tax.

This page is general information, not tax or legal advice. Executors are personally responsible for the estate's tax; if the estate is large, has property abroad or the deceased was not UK resident, take professional advice.

Sources & references

The rates, allowances and rules in this guide are drawn from the official HMRC and GOV.UK sources below, checked for the 2026/27 tax year. Each link opens the relevant government page in a new tab.

Verified against published HMRC and GOV.UK guidance.