I am an Australian citizen who has lived in Australia for the last 30 years and pay Australian tax. However I was born and raised in the uk.
My mother recently passed away in the uk as a British citizen, I am one of 3 executors and beneficiaries all of whom are her siblings and the other 2 live in the uk.
In accordance with UK law we need to pay uk inheritance tax from my mothers estate prior to probate.
I am uncertain from looking at discussions on this forum and on the ATO website whether I will need to pay capital gains tax too.
My mother bought her property in 1987. It was her sole place of residence from then until her death.
All executors are in agreement that we intend selling the house when probate has come through
However probate can take a year and depending on uk housing market at that time it may take some time to find a buyer.
Am I right in thinking that if the sale settles before 2 years from the date of my mothers death my inheritance from the sale of the property will not be subject to cgt?
My concern is if the sale is delayed and takes longer that 2 years. Am I subject to cgt on the capital gain in value of the property from when she bought it in 1987? or pay cgt just from the date of her passing this year?
I am hoping someone can help clarify this for me.
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