There is no CGT to pay when inheriting a property. You only pay Capital Gains Tax if you later sell or give it away for more than its probate value, and you can keep it for as long as you like. If a taxable gain arises, you must report it and pay the tax within 60 days of completion, then include it on your Self Assessment return by 31 January after the tax year ends.
So the real question is not how long after inheriting you pay, but when you sell. Selling soon after the death usually means little or no gain, while holding the property for years can mean a bigger bill. For the official overview, see GOV.UK’s guidance on tax on property you inherit.
This guide sets out every deadline that matters after inheriting a property, how the timing of a sale changes your CGT, a worked example for 2026/27, and the reliefs that can reduce the bill.
Do You Pay CGT When Inheriting a Property?
No. Inheriting a property is not a disposal for Capital Gains Tax, so there is nothing to pay at the point you receive it. Any Inheritance Tax is dealt with by the executors from the estate before the property passes to you.
What you do receive is a new base cost. For CGT purposes you are treated as acquiring the property at its market value on the date of death, normally the figure agreed for probate. Any rise in value during the deceased’s lifetime is wiped out. Our guide to probate value and why it matters for CGT explains how that figure is set.
CGT only becomes relevant when you:
- Sell the property for more than its probate value, after allowable costs.
- Give it away to anyone other than your spouse or civil partner, because a gift is treated as a sale at market value. See our guide to CGT when you gift property.
- Transfer a share to a sibling or another beneficiary after the estate has been settled.
Is There a Time Limit on Selling an Inherited Property?
There is no legal time limit after inheriting a property. You can sell it a month after receiving it, or keep it for decades. HMRC does not charge CGT for holding a property, only on the gain when you dispose of it.
The length of time you hold it after inheriting a property still matters, because it affects:
- The size of the gain. The longer you keep it, the more it is likely to rise above the probate value.
- The reliefs available. If you move in and make it your main home, Private Residence Relief can cover the months you live there. Our guide to selling an inherited property you have lived in covers this in detail.
- The tax year of sale. Each tax year gives you a fresh £3,000 annual exempt amount and resets your income for the 18% and 24% rate bands.
Key CGT Deadlines After Inheriting a Property
| Event | Deadline |
|---|---|
| Inheritance Tax paid by the estate | By the end of the sixth month after the month of death |
| Deed of variation to redirect the inheritance | Within 2 years of the death |
| Main residence nomination if you now own two homes | Within 2 years of having two residences |
| IHT loss relief if the estate sells the property for less than probate value | Sale within 4 years of the death |
| Report and pay CGT on a UK residential property sale | Within 60 days of completion |
| Include the gain on your Self Assessment return | 31 January after the end of the tax year of sale |
The 60-day deadline is the one most people miss after inheriting a property. It runs from the completion date, not exchange, and applies whenever there is CGT to pay on UK residential property. You can report and pay Capital Gains Tax on GOV.UK using a UK property account.
Selling Soon After the Death vs Keeping the Property
Selling quickly. If you sell soon after inheriting a property, or the property is sold within a few months of the death, the sale price is usually close to the probate value, so the gain is small or nil. Selling costs such as estate agent and solicitor fees often turn it into a loss. If there is no taxable gain, no 60-day return is needed.
Selling through the estate. If the executors sell before the property passes to you, the estate pays any CGT at 24%. The estate gets its own £3,000 annual exempt amount for the tax year of death and the next two tax years. If the estate sells for less than probate value within four years of the death, the executors can claim IHT loss relief on form IHT38, which reduces the Inheritance Tax.
Keeping it as a rental or second home. The whole gain above probate value will be taxable when you sell, at 18% within your unused basic rate band and 24% above it. Rental income is taxed separately each year.
Moving in. The months it is your only or main home, plus the final nine months of ownership, are exempt under Private Residence Relief.
Worked Example: Selling 21 Months After Inheriting
Sarah’s mother died on 10 June 2025. Her house was valued at £300,000 for probate and passed to Sarah, who let it out. Sarah sold it with completion on 15 March 2027 for £330,000, paying £6,000 in agent and legal fees. Sarah is a higher rate taxpayer.
| Step | Amount |
|---|---|
| Sale price | £330,000 |
| Less probate value | (£300,000) |
| Less selling costs | (£6,000) |
| Gain | £24,000 |
| Less annual exempt amount 2026/27 | (£3,000) |
| Taxable gain | £21,000 |
| CGT at 24% | £5,040 |
Sarah must file a UK property return and pay £5,040 by 14 May 2027, 60 days after completion. She then reports the gain again on her 2026/27 Self Assessment return by 31 January 2028, where any payment already made is credited. For more on the method, see how capital gains are calculated on inherited property and the current CGT rates for 2026.
How to Reduce the CGT Bill
- Use your annual exempt amount. Everyone has a £3,000 annual exempt amount. If the property is owned jointly, each owner has one.
- Claim every allowable cost. Agent and solicitor fees on the sale, and the cost of improvements such as an extension, reduce the gain. Repairs and redecoration do not.
- Think about who sells. A sale by the estate is taxed at a flat 24%, while a basic rate beneficiary may pay 18% on part of the gain.
- Consider a deed of variation. Within two years of the death, beneficiaries can redirect the property, for example to a spouse or between siblings, to spread the gain.
- Time the sale. Completing in a year when your income is lower can keep more of the gain in the 18% band.
Our guide on how to reduce CGT on inherited property covers more legitimate planning options. HMRC’s own rules on the allowance are on the GOV.UK Capital Gains Tax allowances page.
Not sure who to ask? Our guide to choosing a capital gains tax specialist explains what to look for and how we help clients online across the UK.
Frequently Asked Questions
How long after inheriting a property do I have to pay capital gains tax?
You do not pay CGT when you inherit. If you later sell at a gain, you must report and pay within 60 days of completion, and include the gain on your Self Assessment return by 31 January after the tax year ends.
Is there a time limit on selling an inherited house in the UK?
No. There is no deadline to sell an inherited property. The executors may need to sell it to pay Inheritance Tax or debts, but once it has passed to you, you can keep it as long as you like.
Do I pay capital gains tax if I sell an inherited property immediately?
Usually very little or none. The gain is measured from the probate value, so if you sell soon after the death for a similar price, your selling costs often cancel out any gain.
Can I avoid capital gains tax on inherited property by living in it?
Partly. If you move in after inheriting a property, Private Residence Relief exempts the months the property is your only or main home, plus the final nine months. Months before you moved in, or while it was let, remain taxable.
What happens if I miss the 60-day CGT deadline?
HMRC charges an initial £100 late filing penalty, with further penalties if the return is more than six months late, plus interest on tax paid late. If you have missed it, file as soon as possible.
Who pays the CGT if the executors sell the house?
The estate pays it, at 24% on residential property after the estate’s own £3,000 annual exempt amount. Beneficiaries then receive the net proceeds and have no CGT to pay themselves.
Conclusion
You never pay CGT just for inheriting a property. The tax only arises when you sell or give it away, and it is based on the rise in value since the date of death. There is no time limit on selling, but the longer you hold the property, the larger the gain is likely to be.
If you sell at a gain, the 60-day reporting deadline applies from completion. Plan who sells, when, and which reliefs apply before you instruct an agent.
For advice after inheriting a property, speak to our inheritance and CGT specialists. Call us on +44 (0)1204 859315 or send us your question for a free initial consultation and a fixed-fee quote within 24 hours.
