Right to reside

[Stevo71]

When our parents transferred their property to my siblings and me, retaining a lifetime right to reside (an interest in possession), what are the Capital Gains Tax implications now that this right has ended with my father’s death in February 2026 — specifically regarding the acquisition date and base cost for CGT purposes, whether the transfer into trust/reservation and the ending of the life interest are separate CGT events, how principal private residence (PPR) relief applies given our parents lived there but we did not, and what our CGT exposure would be if we now sell the property?”

[AGoodman]

It depends greatly on when they set up the trust - in particular whether they did it before or after 2006.

Also, did your parents have a joint life interest? If so, I assume your mother predeceased your father?

If the trust was pre-2006, then its likely that the value is rebased to current value on your father's death (s.72 TCGA). Your only taxable gain on sale would be any gain since your father's death.

if the trust was post-2006, then the value is not rebased automatically but, if the trust came to an end, there would be a deemed disposal under s.71. This is potentially taxable but PPR should be available.