CGT on (rather large) gift?

Jeems

My father sold his business a while back and invested in a property for me, fully paid off.

However, he has since passed away and the gift (gift of cash, bought the property in my name basically) was made 6 and a half years ago. I understand the full amount of this gift will need to be included in his IHT calculations which is fine, but will HMRC come after me personally with a CGT demand or any other type of tax bill?

It is and always has been my main residence and I have no plan to sell or let it out in the near future.

booksurr

on the info you provide no CGT is due - the property appears to have been in your sole name since purchase and it has always been your main home so has been exempt from CGT for as long as you have owned it

the cash gift from your father to you 6.5 years ago would appear to be a PET for IHT purposes so will be subject to the 7 year sliding scale as to how much of it is added back into his estate for IHT purposes - presumably the executor is dealing with it accordingly

Jeems

How about if I decide to sell / let out in future? How would CGT be calculated then?

I am the executor of the will, and working through mountains of paperwork!

Even with taper relief, the full amount of the gift is added to the value of the estate right? My fathers estate will not be over the £325k threshhold.

xylophone

http://www.hmrc.gov.uk/manuals/ihtmanual/IHTM14611.htm

http://moneytothemasses.com/tax-advice/inheritance-tax-iht-taper-relief-on-gifts-explained

Be sure that you understand how taper relief works. Remember that it only comes into play if the donor dies between three and seven years after the gift was made and the total value of any gifts they made is over the threshold.

Was there any spouse IHT transfer to be considered? https://www.gov.uk/inheritance-tax/leaving-assets-spouse-civil-partner

getmore4less

How big was the gift(at the time) and whats the size of the rest of the estate(before adding back failed PETS)

any other gifts that fall within the 7 years and not exempt..

There may be no taper relief if the gift was not big enough.


If you have been living in the place as your main home then nothing changes re CGT you get the relevent exemption from the time to got the place for the time you live in it.


There is ananomoly for IHT if the gift was the asset and it went down in value(not often a problem for houses).

CLAPTON

tax is all about detail

how much did he give you
how much was his estate at the time of death (excluding your gift)
did his wife predecease him and is her IHT allowance available