The commentary below considers the situations in which capital gains tax may apply to personal representatives. For an overview of the taxation of capital gains generally, see C1.101.
Capital gains tax treatment of personal representatives
In relation to property forming part of the estate of a deceased person, the personal representatives are treated as a single and continuing body of persons, distinct from the persons who may from time to time be the personal representatives1.
The personal representatives are jointly and severally liable to capital gains tax on gains realised in the course of administering the deceased's estate2.
Deemed disposal of the deceased's assets to the personal representatives on death
When an individual dies, the assets of which they were competent to dispose are deemed to be acquired on death by the personal representatives (or other person on whom they devolve) at their market value. This means that the capital gains tax base cost of the assets for the personal representatives is the market value at the date
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