CGT when person dies after selling business

joejtd

My stepdad sold his business November 2009. He was planning submit tax return September as normal. Unfortunately died this May 2010. Will the normal CGT entrepeneur allowances accrue to the estate?

fubar4164

This isn't my specialist subject, but I think that since the business was sold whilst he was alive, the disposal will qualify for the normal entrepeneurs' relief as usual, and the personal representative will have to fill in the tax return and pay the tax.

The remaining money is then part of the estate for IHT and the normal IHT rules will then apply to it.

Here is a link to HMRC's IHT manual.

http://www.hmrc.gov.uk/manuals/ihtmanual/index.htm

Hope it helps

joejtd

Cheers, that confirms what I thought. IHT not an issue as estate well under threshold.
Thanks again.