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Where Taxpayers and Advisers Meet

Cgt/Iht

Herbs16
Posts: 78
Joined: Wed Aug 06, 2008 3:53 pm

Postby Herbs16 » Wed Jul 18, 2007 2:09 am

I hope someone can help
My father died leaving my mun a 2/3 share in 2 houses, not ppr worth £250k, she has now passed them to myself and brother.
Assuming she lives for 7 years i assume there is no iht.
If we sell them now is there any cgt?
Thanks in advance

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Postby Peter D » Wed Jul 18, 2007 2:17 am

Depending on the time that has passed there may be a CGT liability on your Mum. This was not best was to do this, if your father passed away less than 2 years ago I would have considered a Deed of Variation leaving the share of the property to you directly so they did not enter Mums estate. I would also give carefull consideration to the use of your fathers Nil Rate band. Was there a discretionary trust in place. However you do say 'she has now passed' Who owns the other 1/3 share. Did your Mum take advice on this and haa the Deed application gone through yet. Regards Peter

Lee Young
Posts: 2688
Joined: Wed Aug 06, 2008 3:26 pm
Contact:

Postby Lee Young » Wed Jul 18, 2007 2:46 am

I entirely agree with Peter. If he died less that 2 years ago get advice soonest!
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


Partner, Frettens LLP
lyoung@frettens.co.uk
01202 491701

Herbs16
Posts: 78
Joined: Wed Aug 06, 2008 3:53 pm

Postby Herbs16 » Wed Jul 18, 2007 2:54 am

hi
thanks
it was more than 2 years ago, the deed application hasnt gone through yet from mum to us.

Lee Young
Posts: 2688
Joined: Wed Aug 06, 2008 3:26 pm
Contact:

Postby Lee Young » Wed Jul 18, 2007 4:28 am

in which case get some paid for tax advice before signing.
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


Partner, Frettens LLP
lyoung@frettens.co.uk
01202 491701

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Postby Peter D » Wed Jul 18, 2007 7:21 am

As Lee states, get some paid advice before signing.
This is a damage limitation exercise and needs considered thought and all the facts including who the other 1/3 owner is. One potential CGT reduction is to transfer one property to one sibling this year and one in the next FY. Be warned if She transferred 1/3 to you each this year and 1/3 each to you next year this will trigger a 'Link' transaction and be treated as one transaction. It is also important to look at the goal, yes Mum wants to reduce her estate for IHT reasons I assume but what are you going to do with the property. Regards Peter


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