Sale of inherited house held in Will Trust

[LadyGrey]

My father died in 2015 and he shared a house (tenants in common with his girlfriend). My father's house share (50%) was placed in a Will Trust for his 3 children (I am one of them). For IHT purposes the house was valued at £460k and because his girlfriend continued to live there it was reduced to £414,000 for IHT purposes calculation because of the 10% reduction for a sitting tenant.

The house has now been sold for £600k. My ultimate question is "what is the CGT valuation for the Will Trust calculation, would it be either £460k or £414k because of the IHT 10% discount" If so it means more is liable to CGT ie an extra £46k at 28%.

Can anybody advise or point me in the direction of a professional to advise on the CGT calculation for the Will Trust please?

Thanks in advance

[AGoodman]

414 - under s.62 TCGA, there is a deemed disposal at market value on death. You recorded that the market value was 414 for IHT and the test is the same.

[taxplanet]

If the girlfriend continued to occupy the property and had a right to occupy it under the terms of the will trust the whole or part of the trustees gain may be relieved by TCGA 1992 s225 - see HMRC guidance at https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65400 and following paragraphs

[maths]

There appear to be two parties selling their respective interests ie the trustees of the will trust and the interest held separately by the girlfriend.

The gain arising on each should be covered by the principle private exemption and hence no CGT should arise (irrespective of the valuation of the trustees' interest acquired on father's death).