Interest in possession Trust

[Kryton]

In 2002 solicitor drew up an Interest in possession Trust for my 2 son's and myself = 1/3 each beneficiary.

I realize IHT will need to be paid on the sale of the house on my demise which is over the threshold amount.

Wife passed on 10 years ago.

My question is.

1/ Will sons have any personal tax to pay after payment of IHT, given they live in their own properties?

2/ If I sell home and buy another of the same value for me to live in only would sons have to pay any tax on the sale of my existing home?

Thanks

[Lee Young]

Reading between the lines it would seem that you live in the property which was settled. This makes it a gift with reservation of benefit for IHT purposes. Tax will be payable out of the estate when you die.

As you occupy the property under the terms of the settlement then on sale the trustees will be able to claim main residence relief for CGT purposes to avoid a tax charge on sale.

[Kryton]

Reading between the lines it would seem that you live in the property which was settled. This makes it a gift with reservation of benefit for IHT purposes. Tax will be payable out of the estate when you die.

As you occupy the property under the terms of the settlement then on sale the trustees will be able to claim main residence relief for CGT purposes to avoid a tax charge on sale.

Many thanks