husband with cancer

LUKEJONCAPEWELL13

Hello, am in a really horrible situation and if there is anybody that can help or point me in the right direction I would be extremely grateful, thank you.
Me and my husband own some holiday homes but the business is in his name, I am just down as a house wife. My husband got diagnosed with terminal cancer and has be given only 2 months to live, 6 months with chemotherapy. My husband is only 46 years old. We have put the whole lot up for auction because I cant run the business myself and look after my dying husband, for the few days left he has I want to spend it with him, not working all the hours I would have to, to keep it going.
The question is that I think he would qualify for entrepreneur relief of 10%, of the capital gains tax. That ok. But if he dies before we sell the holiday homes I have been told that I would have to pay 40% capital gain tax....is this true? Its hard enough for me and my son to go through this as it is, we have put blood and sweat into this, no holidays, days out, going out for meal, we have scraped every penny into this.....please help

xylophone

Do you have an accountant? Has your husband made a will?

Is your husband well enough to discuss his affairs?

LUKEJONCAPEWELL13

Our business account has been closed, no he hasn't made a will, no he isn't well enough to discuss things at the moment.

LUKEJONCAPEWELL13

We have just found a tumor in another part of his body yesterday, they cant do anything else. Im am at a loss what to do about this capital gains tax, All that hard work, was it worth it?

xylophone

It seems to me to be essential that your husband makes a will and that expert advice is taken from a chartered accountant.

It is clear that your husband is physically very ill but presumably he is still of sound mind.

Are you receiving any assistance from any of the cancer charities?

In the circumstances, it may well be possible to arrange for a home visit by a solicitor who may be able to recommend a local CA.

http://www.step.org/for-the-public

[Deleted User]

There are a number of CGT experts on here. Perhaps there is a possibility of gifting the business to your son. He is a 'connected person' and, while gifted, the disposal proceeds would be the value at the time of the gift. That MAY limit the CGT but will not affect the inheritance tax position.

I have not fully explored the consequences of this option in such a short time and there may be pitfalls that I have not immediately thought of - hopefully others will assist.

PS - there is no 40% rate of capital gains!

DigForVictory

1. Get to a solicitor and make a Will. You can mirror it on a WHSmiths form later if one isn't ready to make hospital visits.

2. Get an accountant in to help bring your husband peace of mind that all you've worked for together is not being sold at fire sale rates - take advice & get one you can get along with.

Consult on the tax situation, as clearly even entrepreneurs can die unexpectedly but how the law is written and how HMRC choose to interpret such situations will be known & can be planned around.

If you do put things into your son's name, it may save taxes but it'll make things like student loans etc more complicated down the line - good advice now is worth paying for. It'll give all three of you peace of mind.

Ask the hospital what support is available for you & son now & in the coming months through charities etc. You already know life is monstrously unfair - so make sure those on your team have a professional interest in making it as least bad as possible. Also brief school in. They may have counsellors and be able to manage somewhat what this does to your son's education.

xylophone

Another thought, does your husband have a pension?

Keep_pedalling

March2012 wrote: »

meet a tax specialist and make sure will done. can he do anything for his health? i am against chemo etc. lots on facebook on alternatives. just in case helps.

This is not the place for crank quackery :mad:

Mojisola

Have you claimed benefits under the special rules?

https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/help-with-your-claim/how-to-claim-if-terminally-ill/

[Deleted User]

We also need clarification as to in whose name(s) the holiday homes are held. The op has stated that the business is in her husband's name but has written 'me and my husband own' and 'we sell'. If I am correct, and they are in the sole name of her husband, I suspect that gifting to their son is the only sure way to effect a 'sale' before her husband does pass away thereby availing of the opportunity to claim enrepreneurs relief. While an enormously difficult set of circumstances I am sure that the gentleman would wish to leave as much as is legally possible to his wife and son.