Avoiding cgt through inheritance.

Sorry for asking this again - I thought I understood the answer a few years ago, but realise I don't... And I apologise for not replying to RR in 2005. I don't know how I made that error.

For privacy, this is simplified with made up figures:-

I don't have to pay any CGT this year. If I sell our investment house, which I bought for around 30, and is now worth 120, I'll have to pay CGT based on the profit I make from the sale.

I am below the IHT limit. If instead, I leave the investment house in my will to my daughter, ...and I die before April 09, I thought the CGT issue would disappear, since I haven't sold the house and therefore am not liable. And I assumed that since she acquired the house when it's value was

120, and wouldn't make a profit if she sells it at that price she wouldn't be liable for CGT either. Is that right, or would the bequest somehow count as a sale for profit to my daughter making my estate liable for CGTt? How does death and inheritance rather than sale for profit affect CGT?

Hope that makes sense.

Thanks agian Tony

Reply to
tonyjeffs
Loading thread data ...

There is no CGT payable on death. The IHT rules would come into play.

Rob Graham

Reply to
robgraham

Thanks Rob No urgency to sell, so it looks like inheritance is the way to go. The tax savings will go some very small way to offsetting the predominant decline in house prices!

Tony

Reply to
tonyjeffs

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.