Postby Jholm » Wed Feb 28, 2024 10:38 am
Possible idea but not a specialist in this area - someone will confirm or deny I am sure!
He could look at settling the property into a trust. This would technically be a chargeable transfer for IHT and also CGT. Assume the property value falls below his nil rate band (likely £325,000), then no IHT due on transfer. However, because this is nevertheless a chargeable transfer to IHT, s260 applies, meaning the gain for CGT purpose can be rolled into the property base cost (ie. reducing the allowable base cost against future sale). This route could mean no taxes payable (subject to value). Would need to consider this reduces his available NRB at death - 7 years survivorship window applies.
Can anyone confirm or shred this idea?