Taxation of Chargeable Gains Act 1992 section 62

Death: general provisions

Section 62 sets out the capital gains tax rules that apply when a person dies, covering how assets are treated on death, the carry-back of losses, the role of personal representatives, and the treatment of post-death variations and disclaimers.

• On death, assets are treated as acquired by the personal representatives at market value, but there is no deemed disposal by the deceased — so no capital gains tax charge arises at the point of death.
• Allowable losses in the year of death that exceed chargeable gains for that year can be carried back and set against chargeable gains of the three preceding tax years, with later years relieved first.
• When a legatee receives an asset from the estate, no chargeable gain arises for the personal representatives, and the legatee is treated as having acquired the asset at the same base cost as the personal representatives.
• Variations or disclaimers of the deceased's estate made in writing within two years of death are not treated as disposals, provided specific conditions are met, including a written statement of intent and no monetary consideration.