Who is liable for Capital Gains Tax on proceeds of a house sale?

[ConfusedWolf]

My father died 12 years ago and in his will he left his half of the house (bungalow) equally to his 5 children.
The bungalow has just been sold, half going to my mother, who is in a care home and half to the 5 children.
My sister and I are executors and trustees of his will. When he died the property was registered with the Land Registry with the proprietors being my mother and myself and my sister. The other 3 children were not mentioned on the document.
Now we have received the proceeds of the sale, we have been unable to find a definitive answer to this question.
Do we split the proceeds equally 5 ways to each child who are then individually responsible for their own capital gains or are my sister and I liable to pay the Capital Gains Tax and then distribute the net proceeds?
Thank you in advance for any help or advice that can be given.

[Pezza54]

Hi
Welcome to LB
It sounds as if your late father's will created a bare trust. You and your sister were appointed trustees to legally hold and administer the 30 % share of the property on behalf of your 3 sibling beneficiaries until the property is sold. You do need to check the will.

The trustees are not responsible for CGT for a bare trust, so your siblings would be responsible for paying CGT individually based on their 10% share

Working out the capital gain for the property may not be as simple as taking the price the property sold for and deducting the value 12 years ago. The bungalow may have been extended or significant improvements made in the last 12 years

[ConfusedWolf]

Hi
Welcome to LB
It sounds as if your late father's will created a bare trust. You and your sister were appointed trustees to legally hold and administer the 30 % share of the property on behalf of your 3 sibling beneficiaries until the property is sold. You do need to check the will.

The trustees are not responsible for CGT for a bare trust, so your siblings would be responsible for paying CGT individually based on their 10% share

Working out the capital gain for the property may not be as simple as taking the price the property sold for and deducting the value 12 years ago. The bungalow may have been extended or significant improvements made in the last 12 years

Thank you for the information Pezza54.
I will check the will and report back to the family and hopefully post back with the outcome in due course.

[Pezza54]

I should have said that an individual's liability for CGT depends on their personal income tax rate band (18% for a basic rate tax payer and 24% for a higher rate tax payer) and the CGT annual exemption for the financial year the beneficiaries receive their money