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Where Taxpayers and Advisers Meet

deed of variation after inheritance tax paid advice ?

worldlyman
Posts:11
Joined:Sat Feb 10, 2018 1:14 am
deed of variation after inheritance tax paid advice ?

Postby worldlyman » Sun Apr 07, 2019 9:22 pm

I am sorting my dad's estate out - he passed away recently and my mother several years ago.

My father has no will and there are 4 children (including me).

After inheritance tax is paid, my understanding is the estate (which includes more than one property) is split equally between all 4 children in terms of ownership.

If we want to change the ownership, we need to do Deed of Variation and there would be capital gains tax payable if for example property A passes from a, b, c passes to c.

I am worried about differing valuations for inheritance tax and when the property maybe transferred and hence a large potential capital gains tax bill for c in the above scenario.


What would the wise and knowledgeable advise ? Transfer immediately to avoid variations in capital gains tax ? any other advice ?

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: deed of variation after inheritance tax paid advice ?

Postby darthblingbling » Mon Apr 08, 2019 8:07 am

Uplift to probate market value so if you transfer soon any gain should be minimal.

Obviously be aware that it forms part of your estate for inheritance tax purposes should you pass away within 7 years.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: deed of variation after inheritance tax paid advice ?

Postby AGoodman » Mon Apr 08, 2019 10:06 am

What darthblingbling said, but also, a deed of variation allows you to make elections regarding both IHT and CGT so there would be no disposal at all for CGT.


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