Hi ,
I would be grateful if someone could please confirm or advise on a clients position.
The husband is in poor health and has a collection of vintage cars built over many years primarily as a hobby / passion. They are worth approximately £350,000.
He would like advice on the best way forward as he does want to gift the funds to his family. He is concerned about the PET 7 year rule.
I think:
1) There should be no Capital Gains Tax as any sale would be exempt as a "classic car". However should he gift the cars or sell and distribute the funds to his children it would get caught for IHT (as he has other assets which would use up his allowance) if he did not survive 7 years.
2) A better solution may be to transfer the ownership/insurance etc of the vintage cars all to his wife who is in better health than him (although that is no guarantee of a longer life).
- there would be no Capital Gains Tax as it is an exempt asset and also transfers between spouses are tax free.
- his wife could then either sell the cars and gift the funds (or give the cars) to the children and hopefully have a much better chance of surviving the 7 years.
Thanks in advance for any advice you can offer.
Regards
Manhar
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