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Where Taxpayers and Advisers Meet

CGT on death for joint Freehold

mobile73
Posts: 3
Joined: Mon Oct 08, 2018 2:29 pm

CGT on death for joint Freehold

Postby mobile73 » Mon Oct 08, 2018 2:38 pm

Hi
My in laws own a small number of freeholds, which periodically give rise to lease premiums which are subject to CGT. My father in law has just died and my question is whether his half is revalued at the current market value on death for CGT purposes?

e.g. Lease premium valued at £10K on death, processed for £12K 6 months later. Before the death, CGT would be due on the full £12K, split 50:50 husband and wife.

After death, is (a) or (b) correct?

(a) 50% of premium is revalued at death at £5K, so CGT is due on £6K + £1K, so £7K?

(b) CGT still due on full £12K

Appreciate any help on this matter.

wamstax
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Re: CGT on death for joint Freehold

Postby wamstax » Mon Oct 08, 2018 6:31 pm

Death is not a chargeable occasion and therefore there is no CGT charge because somebody has died.
regards and hope this helps
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mobile73
Posts: 3
Joined: Mon Oct 08, 2018 2:29 pm

Re: CGT on death for joint Freehold

Postby mobile73 » Tue Oct 09, 2018 9:05 am

Thanks, but that wasn't what I was asking. I know that no CGT is due now. My question is when it is due in the future if half of the value was rebased at the death?


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