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Where Taxpayers and Advisers Meet

Inheritance, cgt and spouse

mab99
Posts:2
Joined:Sun Oct 31, 2021 4:57 pm
Inheritance, cgt and spouse

Postby mab99 » Sun Oct 31, 2021 5:02 pm

Hi, my spouse is inheriting a portion of parents house. It has increased in value since valuation for inheritance tax and the gain may be over a single persons CGT annual allowance. I believe we can also use my CGT allowance if she gifts me half her gain? Is this correct and if so do we need to do anything specific to record the gifting?

Thanks in advance!

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Inheritance, cgt and spouse

Postby AGoodman » Mon Nov 01, 2021 6:50 pm

Yes you could.

First she has to actually inherit it - which means a transfer from the executor to her and (presumably) her sibling(s). That would be either a transfer (TR1) or appropriation.

Second she needs to transfer half of her own interest. That could be by a transfer made by her and her siblings setting out your respective interests, a declaration of trust made by her and her siblings or a declaration made by her alone, just in respect of her share. The latter is probably easiest but you need to discuss it with the solicitors acting on the estate and sale.

mab99
Posts:2
Joined:Sun Oct 31, 2021 4:57 pm

Re: Inheritance, cgt and spouse

Postby mab99 » Thu Nov 04, 2021 12:14 pm

Many thanks for the reply and help.


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