IHT and CGT question

handful

If an estate is invested in Funds/S&S etc when the valuation is done to satisfy the IHT rules (on the day of death etc) and then the value of those investments increases whilst waiting for probate and distribution, is it the beneficiaries that become responsible for CGT or can that be paid by the executors of the estate before distribution? I would be grateful if someone can clarify?

macman

The CGT/IHT is levied on the estate, not the beneficiaries. The executors are liable to settle all debts, including tax owed, before they make a distribution.

handful

macman said:

The CGT/IHT is levied on the estate, not the beneficiaries. The executors are liable to settle all debts, including tax owed, before they make a distribution.

Thank you macman, much appreciated.

Keep_pedalling

macman said:

The CGT/IHT is levied on the estate, not the beneficiaries. The executors are liable to settle all debts, including tax owed, before they make a distribution.

This assumes those assets are sold and the proceeds passed to the beneficiaries, if those assets are transferred to the beneficiary then they will be responsible for CGT when they eventually sold them.

handful

Keep_pedalling said:

macman said:

The CGT/IHT is levied on the estate, not the beneficiaries. The executors are liable to settle all debts, including tax owed, before they make a distribution.

This assumes those assets are sold and the proceeds passed to the beneficiaries, if those assets are transferred to the beneficiary then they will be responsible for CGT when they eventually sold them.

That is exactly the answer that clears up the confusion I had from trying to read up about it. Thanks