CGT and Eldery Care

ABC99

Dear All


My father is set to go into a care home.He will be self-funded.To pay for this we will need to sell his shares.


If he makes a Chargeable gain will he be required to pay CG Tax or will this be exempt as he is using this to fund his own care?


Thank you.

bigadaj

I'm not aware of any exemption for care home fees in relation to capital gains.

He does have an annual allowance of £11000 on which no tax is due, and the purchase cost can be traded off against any tax due, so fair amount can be sold without any tax becoming due.

ABC99

Thanks for the response.

Keep_pedalling

Make sure he uses this year's allowence by selling some before 6th April to maximise this year's allowance, you can then sell another block after the 6th to maximise next year's £11,100 allowence, and if possible hold off selling any more until the following FY.

ABC99

Yes,that's going to have to be the strategy.

kidmugsy

If he sells any shares at a loss, that can be set against the gains.

P.S No CGT if he sells shares in an ISA.