How-to: Liability of Beneficiaries to Capital Gains Tax (SQE Wills and Administration of Estates)

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In our previous lesson, we introduced capital gains tax and explained that personal representatives will be liable to pay this tax when they sell estate assets to raise funds and make a gain from this sale.
In this our final lesson of our Wills and administration of estates module, let us look at the liability of the beneficiaries to pay capital gains tax:
If the personal representatives do not need to sell estate assets to pay off liabilities and instead transfer them to the beneficiaries under a Will, there is no chargeable gain or allowable loss for the purposes of capital gains tax.
The beneficiary is deemed to have acquired the asset transferred at its probate value. So if he disposes of the asset in the future, the probate value will be taken as the 'acquisition price' for the purposes of a capital gains tax calculation.