Hoping someone could provide a bit of clarity on a unique scenario.
Father A buys a house in 1975, for 5k. Not his primary residence. The house is worth in 2018 200k. Through out that time he’s spent 30k max in all costs relating to repairs/purchasing the property etc. In 2018, he gifts the property to his daughter for nil consideration and his Daughter is legal owner and proprietor as of 2018. In 2018 this is still not his primary residence. Father A then dies in 2020, approx 18 months after gifting the property. As I understand it, Father A should have declared the gift on his 2018/2019 self assessment and settled the tax by 31/01/2020, but also as he’s died within 7 years of gifting then Inheritance tax is also due now. Using the rough numbers I have given:
1. How much CGT would Father A have to pay for transferring the property to his daughter?
2. How much further tax would be liable in IHT due to his death in 2020?
3.Would the Estate of Father A only be responsible for the debt if it hadn’t been settled or declared? Or does The daughter hold some liability?
4. If the daughter got into financial difficulties and tried to sell the house to another ‘connected’ person in the family for 15% of todays market value (say the house is now worth 280k), ( 42k )as I understand it she also would have declare/pay the Capital Gain she’s enjoyed in the last 3 years. Her expenses for the last 3 years has been insurance and legal costs to transfer the property so let’s say 5k max.
Any advice would be greatly appreciated
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