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Where Taxpayers and Advisers Meet

Undeclared capital gains - zero to pay

Palin74
Posts:4
Joined:Fri Aug 25, 2017 3:22 pm
Undeclared capital gains - zero to pay

Postby Palin74 » Mon Aug 28, 2017 6:28 pm

In 2007 my father passed away and left his estate to my mother

my mother gifted several properties to my siblings as we were told this was prudent both for IHT and as there would be no CGT to pay as values had decreased significantly from probate until date of gift (it was the boom when he died and after the crash when properties were gifted)

In my naivety at time i went along with this without question and filled in my mothers tax returns to include her income but didnt even think about capital gains as i was told there was nothing to pay.

Even though there was nothing to pay from what i know now i should have included this information at the time

could this cause any problems in the future and do i need to take any action?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Undeclared capital gains - zero to pay

Postby maths » Tue Aug 29, 2017 6:25 pm

If your mother gifted the properties at market values below probate values having inherited them on the death of your father then she would have made allowable losses but no capital gains.

In which case there was nothing to declare on the part of your mother (she could have claimed relief for the capital losses but she did not have to do this).


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