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Where Taxpayers and Advisers Meet

Transfer of btl property to siblings on death

Martintaxes
Posts: 15
Joined: Fri Apr 28, 2017 12:25 pm

Transfer of btl property to siblings on death

Postby Martintaxes » Fri Dec 14, 2018 12:19 am

Hi, this is a question that's been running around my head for a while now and I can't quite figure it out!
If as parents we die and btl property owned outright forms part of our siblings inheritance, and we are below the IHT limit, do they still have to pay CGT on these properties?
Also what would be the situation over the IHT threshold?
Just IHT or CGT as well?
Many thanks,
Martin.

AGoodman
Posts: 609
Joined: Fri May 16, 2014 3:47 pm

Re: Transfer of btl property to siblings on death

Postby AGoodman » Fri Dec 14, 2018 11:10 am

There is a tax free uplift of the base cost on death so your children would inherit the property with a base cost equivalent to the market value at death.

If they subsequently sell, they only have to pay CGT on the difference between sale price and market value at your death.

This applies whether or not IHT is actually payable.

Martintaxes
Posts: 15
Joined: Fri Apr 28, 2017 12:25 pm

Re: Transfer of btl property to siblings on death

Postby Martintaxes » Fri Dec 14, 2018 12:56 pm

Thank you for the information.
Martin.


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