My recently deceased mother's will gives the NRB to my sister and I, and passes the rest to her surviving spouse, ie our father. The three of us are executors and there are no other beneficiaries. We have just been granted Probate (with no IHT payable) but have not yet distributed the estate.
My father wishes to pass immediately some of the assets inherited (a portfolio of shares and mutual funds) to my sister and I. We do not wish to do it by Deed of Variation as it will change the taxation treatment of the estate and incur immediate IHT. His other choice is to allow the assets to settle into his name and then immediately make a lifetime PET by transferring the securities in specie at no money's worth to my sister and I.
My question is about CGT. THere was a lot of gain on the portfolio during ownership by my mother, but I know that there is no CGT payable by the estate on the securities being bequeathed to my father. I am assuming then assuming that once acquired by him, if he then disposes of them them as gifts, he will do so without any CGT liability except on the difference between the valuation on they day they become his, and the day he makes the gift. And also that doing this inheritance followed by disposal does not alter that IHT taxation treatment of the will.
If anyone could help me I'd be grateful.
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