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Where Taxpayers and Advisers Meet

Let Property on death of spouse

jonlea
Posts:8
Joined:Tue Mar 10, 2009 3:45 pm
Let Property on death of spouse

Postby jonlea » Wed Feb 21, 2024 4:27 pm

My wife own a flat she lets out at market value but if she sold it, a large CGT liability would arise.

If she died but still owned the flat, under our mirrror wills, her estate would pass to me. Would I inherit the flat at its value as at the date of the death of my wife for future CGT purpsoes or does the CGT liability continue based on the same calculations as before death? I assume there is no CGT liability at time of my wife's death, only IHT from my wife's perpective.

What if my wife changed her will to leave the flat to our childrfen? Do they inherit at MV at time of death for future CGT calculations if they decide to keep it as an invesmtment property?

Jholm
Posts:389
Joined:Mon Mar 11, 2019 4:22 pm

Re: Let Property on death of spouse

Postby Jholm » Thu Feb 22, 2024 2:10 pm

CGT base cost would be uplifted to probate value (at date of death).

Fairly common planning is transfer your own assets to a spouse before their death and then 'reinherit' them at probate value, uplifting your base cost.

jonlea
Posts:8
Joined:Tue Mar 10, 2009 3:45 pm

Re: Let Property on death of spouse

Postby jonlea » Sat Feb 24, 2024 7:09 pm

Thank you. Very clear.


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