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Where Taxpayers and Advisers Meet

What tax-Inheritance or capital gains tax ?

Doorstop
Posts:1
Joined:Thu Mar 03, 2022 12:55 pm
What tax-Inheritance or capital gains tax ?

Postby Doorstop » Thu Mar 03, 2022 1:19 pm

Can anyone please advise on the following.
Back in 1985 our mother passed away and left a trust. The trustees was my Father, brother, sister and myself. In 1992 my Father used the trust to purchase a bungalow to the value of £170,000. The bungalow remains in the trust. My Father eventually remarried. His wife was given a life interest in the trust.My Father passed away in 2010 and his wife has just recently passed away. We would now like to dissolve the trust and sell the bungalow. It's approximately valued at £400,000.
Would we need to pay inheritance or capital gains tax ?
Can anyone please advise.

Parky1
Posts:16
Joined:Sun Feb 09, 2020 5:52 pm

Re: What tax-Inheritance or capital gains tax ?

Postby Parky1 » Fri Mar 04, 2022 9:48 am

Both probably , assuming it's a discretionary trust and the trustees are also the beneficiaries.
Capital gains tax on the sale of the bungalow and exit charges on ending the trust. You should also have been paying ten-yearly charges on the value of the trust at the time.
Get professional advice.


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