Renters' Rights Act 2025, Phase 1 commencement
Transition readiness pack
England

Estate & Inheritance

Probate Property UK

PRs' powers during administration; Grant of Probate and Letters of Administration; IHT on property (RNRB; BPR; APR); CGT death uplift and administration period CGT; lettings by PRs; appropriation to beneficiaries; intestacy rules.

14 min readUpdated 8 June 2026Last reviewed: 17 May 2026probateinheritance-taxcgtpersonal-representatives

Grant of Probate and PRs' Powers

Executors have authority from the date of death; administrators from the date of Grant. PRs can sell, let, appropriate, and grant options over estate property under the Administration of Estates Act 1925. A sale by two or more PRs overreaches beneficial interests.

Inheritance Tax on Property

IHT applies at 40% above the NRB (£325,000). The Residence Nil Rate Band (up to £175,000) applies where the deceased's main residence passes to direct descendants — not to buy-to-let property. BPR does not apply to property letting businesses. IHT on property can be paid in 10 annual instalments.

CGT on Sales and Lettings During Administration

The CGT base cost of all estate assets is rebased to probate value on death (the 'death uplift'). PRs have a £3,000 CGT annual exempt amount for 3 tax years after death. Lettings income during administration is estate income taxed at the rate applicable to estates (20% for rental income).

Appropriation to Beneficiaries and Intestacy

PRs can appropriate property to beneficiaries under AEA 1925 s.41; the beneficiary's CGT base cost is the appropriation value. Appropriation in satisfaction of a beneficiary's share is exempt from SDLT. Under intestacy, a co-habiting partner (unmarried) has no automatic right to inherit.

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