Ask for the history before the records scatter

For shares, request acquisition dates, transaction records and details of changes such as share splits. For property, collect purchase and settlement documents, improvement costs, valuations and the history of how it was used. Keep the estate’s distribution records too.

The correct cost base of an inherited asset depends on the circumstances. Some assets carry forward relevant historical costs; others use a market value at death. Having a valuation does not, by itself, mean that valuation is the correct tax starting point.

Check property exemptions before choosing a sale date

An inherited dwelling may qualify for a full or partial CGT exemption. Relevant facts include when the deceased bought it, their residency, whether it was their home and how it was used afterwards.

A two-year disposal period can matter for some exemptions, but selling within two years does not make every inherited property tax free. Check the conditions and settlement timing before relying on that outcome.

Keep ongoing income separate from the inheritance

Rent and dividends can create tax obligations after an inheritance. Income earned while an estate is being administered also needs to be allocated correctly. Ask the executor for the information relevant to your return.

Before deciding to sell or keep an asset, compare the likely tax, costs and cash available afterwards. Your accountant can explain the tax position, while your solicitor handles estate administration and your licensed adviser considers investment suitability.