Capital Gains Tax

Jeremy535897

There is still a capital gain on the bit of the house you inherited, albeit small, unless that part was sold by the executors. You may want to talk to an accountant.

Keep_pedalling

Note10 said:

Was the timing of the gift by OP to husband sufficiently ahead of any disposal to count as a gift of the property rather than a gift of the sale proceeds? The solicitor appears to have advised on this

The solicitor advised us to take this action because it would be beneficial for tax purposes, I can only assume the time scale was correct. 

Never make assumptions, how long between gifting to your wife and the house going on the market?

Grumpy_chap

Reducing capital gain by gifting the asset close to sale (to allow the second person's annual exemption to be utilised) is often not successful in realising the reduction in tax that is sought.

Jeremy535897

Grumpy_chap said:

Reducing capital gain by gifting the asset close to sale (to allow the second person's annual exemption to be utilised) is often not successful in realising the reduction in tax that is sought.

If a solicitor has given advice on the matter, in possession of all the facts, as OP has said, I don't think there's any point in speculating about this issue.

Keep_pedalling

Jeremy535897 said:

Grumpy_chap said:

Reducing capital gain by gifting the asset close to sale (to allow the second person's annual exemption to be utilised) is often not successful in realising the reduction in tax that is sought.

If a solicitor has given advice on the matter, in possession of all the facts, as OP has said, I don't think there's any point in speculating about this issue.

Depends on the solicitor, most are not tax experts and it is the OP who is ultimately responsible for paying the tax not the probate / conveyancing solicitor. It was also probably a solicitor who suggested the dumb idea to avoid care costs in the first place.

[Deleted User]

Jeremy535897 said:

Grumpy_chap said:

Reducing capital gain by gifting the asset close to sale (to allow the second person's annual exemption to be utilised) is often not successful in realising the reduction in tax that is sought.

If a solicitor has given advice on the matter, in possession of all the facts, as OP has said, I don't think there's any point in speculating about this issue.

Indeed - it’s done. Just reinforced what I said previously regarding solicitors and advice in a divorce case - no regard appears to be paid to any potential tax implications of said advice.

Jeremy535897

[Deleted User] said:

Jeremy535897 said:

Grumpy_chap said:

Reducing capital gain by gifting the asset close to sale (to allow the second person's annual exemption to be utilised) is often not successful in realising the reduction in tax that is sought.

If a solicitor has given advice on the matter, in possession of all the facts, as OP has said, I don't think there's any point in speculating about this issue.

Indeed - it’s done. Just reinforced what I said previously regarding solicitors and advice in a divorce case - no regard appears to be paid to any potential tax implications of said advice.

My understanding was that the solicitor actually recommended this course of action for tax reasons, so not really comparable to the only too common case of ignoring tax on divorces.

Note10

Hi all,

We have decided to seek the advice of an accountant regarding the gain.

Thank you all for your input.