I’m new to this forum so go easy on me
I have a situation whereby I am receiving conflicting advice and I obviously need to be correct to avoid repercussions!
I am a small practitioner, with a very small practice and very basic client base.
I rarely have to deal with any CGT issues, infact this is the first time for about 5 years.
This is the scenario:
Back in 1996 my clients parents gifted their property on a 50:50 basis to their two daughters (one of which is my client). It was agreed that the parents live there rent free (I.e. gifted with reservation).
Father died 2008, and mother died 2019.
The house was then sold by the daughters.
Now, I am happy that inheritance tax has been ruled out (house was included in the death estate because it was parents ppr) and total value under 325k.
However, the way I read it is that CGT WILL be payable on the increase in value between 1996 and 2019.
This is where the problem starts.
My clients sister uses a different accountant, and he says CGT is not due and doesn’t even have to go on the tax return because the property was gifted with reservation.
Obviously the sisters discuss this, and now I’m being questioned (naturally) by my client.
I have trudged the internet to find whatever guidance I can, but I will admit to a small fish like me some of the guidance goes a little deep, especially when I don’t have much experience in this area.
If CGT is not due, Please could someone advise on what basis/why not.
And if it is, does anyone have any suggestion on how I break the news to my client??
Many Thanks in advance for any assistance given.