Paying inheritence tax after 15 years

antrobus

Someone dies and an interest in possession comes to an end

This happens in 'interest in possession' trusts - where a beneficiary has an immediate and absolute right to income from an asset held in trust. There is usually no Capital Gains Tax to pay when the beneficiary dies and their interest in possession comes to an end.

http://www.hmrc.gov.uk/trusts/cgt/intro.htm

eddtheduck

Agreed, CGT is not payable on stepfather's death, but it IS payable on the sale of the property by the three children of the MIL. The OP said that the property was to be sold.

If the children were keeping the property, then I agree CGT would not be payable, but that is not the case.

John_Pierpoint

I think we need to establish the exact legal status of the house and its owners. Have they been owning it as trustees of what is mothers personal residence or in their own names as absolute owners who tolerate the presence of the mother?