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Where Taxpayers and Advisers Meet

IHT - Shares in family run company

SYR
Posts:44
Joined:Tue Dec 13, 2011 12:22 pm
IHT - Shares in family run company

Postby SYR » Wed Jul 25, 2018 8:57 am

Mother transfer 50% share to son in 2014/15 - claim for hold-over relief was filed with her tax return.

Mother passed away in Jun 2018 -

Could you please confirm the followings:
No CGT - Correct?
No IHT - Correct?

Does a value of the shares need to be disclose in "Probate"?

Many thanks for any comments.

pawncob
Posts:4910
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: IHT - Shares in family run company

Postby pawncob » Wed Jul 25, 2018 10:24 am

Well, no CGT until you dispose of shares.
IHT position depends on whether the business qualifies for relief. If not, then shares form part of estate and are (possibly) taxable (at a lower rate)
With a pinch of salt take what I say, but don't exceed your RDA

AGoodman
Posts:1450
Joined:Fri May 16, 2014 3:47 pm

Re: IHT - Shares in family run company

Postby AGoodman » Wed Jul 25, 2018 11:39 am

The shares will need to qualify for BPR at both the time of the gift and the death.

SYR
Posts:44
Joined:Tue Dec 13, 2011 12:22 pm

Re: IHT - Shares in family run company

Postby SYR » Wed Jul 25, 2018 11:59 am

Thank you AGoodman & pawncob

The shares qualify for BPR.


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