CGT on property beqeathed to daughter

numbercruncher

I would be grateful if someone knows the answer to the following query: I have an investment property currently let ( it is not my main home and never has been). I was thinking of selling up but am concerned about the amount of CGT due on sale.
If I were to retain the property and leave to my daughter in my will would she still have to pay the same CGT on sale after my death? In other words would it be calculated only on the period of her ownership or would HMRC still require the CGT from my period of ownership?

le_loup

No but she may have to pay Inheritance Tax.

ceeforcat

Your estate would have to pay inheritance tax if your estate, including this property, had a value of over £325000 on current rates. Your daughter would be deemed to have acquired the property at the value at the time of your death and would pay CGT any proceeds over and above that figure when sold (less exemptions of course)

numbercruncher

thanks for the replies. My estate almost certainly won't be liable to inheritance tax so perhaps I won't sell up and pay all that money over to HMRC!

numbercruncher

Sorry for the "angry" icon guys - I don't know how that got in there! Please excuse

ceeforcat

In fact what you have now decided to do is the complete opposite of many posters who have gifted their property to their children already and are seeking advice. In those case they have the potential for the property to be both incuded in the estate for IHT and also be liable to pay CGT on that disposal. In many cases a property not subject to CGT (main residence etc) suddenly becomes subject to two different taxes.