Gift with Reservation - CTG

by **TIMONLINE** on Mon Sep 19, 2011 8:46 pm

What is the situation where a property is given as a gift with reservation and then sold - is the recipient subject to CGT?

by **Lee Young** on Tue Sep 20, 2011 7:11 am

If it is has gone up in value then yes.

by **ptpash** on Tue Sep 20, 2011 2:40 pm

Does that mean the original donor has now made a PET on the release of the reservation for IHT?

by **Lee Young** on Wed Sep 21, 2011 7:59 am

by **TIMONLINE** on Wed Nov 02, 2011 4:31 pm

What's the situation where a second GWR supercedes an initial GWR - is the profit based on the first or the second when the reservation ceases?

by **Lee Young** on Wed Nov 02, 2011 5:27 pm

Not sure I follow your question - please could you elaborate?

by **TIMONLINE** on Thu Nov 03, 2011 3:59 pm

Well if a GWR was set up in 2000 and superseded by another one with slightly different terms in 2004 and then the reservation ceases (ie the property is sold and proceeds distributed) in 2010 according to the terms of the 2004 GWR agreement, is the CGT profit based on the profit between 2004 and 2010 or between 2000 and 2010?

by **Peter D** on Thu Nov 03, 2011 4:17 pm

But you can gift the property twice and donor can not change the conditions of the reservation well at least not under normal circumstance. Regards Peter