Hi All
I require some advice please on a CGT Query
The background-
In 1995 grandmother transfers ownership of her property to her son and wife to hold the property in trust until such a time her two grandchildren reach 21 years old and request the transfer of the property into their names
In 1995 (Same time as the trust is created) a declaration was signed by the trustees confirming that the grandmother can continue living in the property until death or voluntary vacation. The term nominal yearly rent is mentioned, however in practice no rent, of any amount was ever received/charged.
For all intents and purposes the property was grandmothers to live in, maintain and improve as she would do if she was still legal owner.
Both grandchildren reached the ages of 21 in 2006 and 2013 however the ownership of the property was not transferred across to them, mainly as the grandmother was still happily and healthily living in the property.
In March 2021 grandmother sadly passed away. Her will states all of her estate will be left to her grandchildren (the same two named in the trust document)
The total amount of her estate (including the house in trust) is below IHT threshold so this will not be applicable in any instances
The property is still held in the name of the trustees.
Property value today = 200,000
Property value in 1995 = 40,000
My questions are:-
1) Is there a CGT liability on either the trustees or the beneficiaries.
2) Will probate be necessary?
3) If CGT liability is applicable, would there be any relief available as it was grandmothers main home for past 30 years?
You advice and counsel is greatly appreciated
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch