Likely CGT / IHT ???

Keep_pedalling

A couple more questions, who has been living there for the last 10 years? Did the will give this person a life interest in the property?

bubby08

I’m not sure what you mean by a life interest but the Will gave permission for Person D to reside in the property until their death which occurred two years ago, which explains why the property is in a state of disrepair and Person A is unable to pay for the required renovations.

Keep_pedalling

bubby08 said:

I’m not sure what you mean by a life interest but the Will gave permission for Person D to reside in the property until their death which occurred two years ago, which explains why the property is in a state of disrepair and Person A is unable to pay for the required renovations.

That is a life interest. What was the relationship between the testator (person to person D? The tax implications could be significant depending on the answer. 

You still have not explained why the inheritance is being given away rather than just sold for the benefit of a beneficiary who sounds like they could do with the money.

bubby08

To be clear Person D as well as Person B have passed away, the relationship between both was friendship. But irrespective of that, I am unsure how their relationship impacts Tax liability for any other person concerned. And the stipulation in the Will was only that Person D can reside in the property subject to certain conditions. 

You still have not explained why the inheritance is being given away rather than just sold for the benefit of a beneficiary who sounds like they could do with the money.

I believed I did answer this, The answer is a result of the delays in being able to obtain probate Person D resided in the property without any accountability and as a result the property is now in a state of disrepair. You mentioned Person B may need the money from the property but following from what you have said previously whether they sell or give the property away they would be subject to CGT all the same.

Do you know once CGT is officially calculated how soon it needs to be paid after any transfer, I’ve read something about 60 days but also something about payments on account and annual tax returns, 

Thank you so much in advance.

Keep_pedalling

bubby08 said:

To be clear Person D as well as Person B have passed away, the relationship between both was friendship. But irrespective of that, I am unsure how their relationship impacts Tax liability for any other person concerned. And the stipulation in the Will was only that Person D can reside in the property subject to certain conditions. 

It would make a difference if it had be a spouse or civil partner rather than a friend as spousal exemption would apply.

You still have not explained why the inheritance is being given away rather than just sold for the benefit of a beneficiary who sounds like they could do with the money.

I believed I did answer this, The answer is a result of the delays in being able to obtain probate Person D resided in the property without any accountability and as a result the property is now in a state of disrepair. You mentioned Person B may need the money from the property but following from what you have said previously whether they sell or give the property away they would be subject to CGT all the same.

Sorry but this does not explain why someone who appears to have BA in the way of assets would give away a valuable inheritance. The only obvious reason is to avoid care costs, but if that is the reason you need to look up the meaning of deliberate deprivation of assets. If they sell they have the means to pay any GGT liability and still have plenty of cash left over to. Improve their quality of life. Giving it away leaves them with a large tax bill they can’t meet so they will be worse of than they are now.

Do you know once CGT is officially calculated how soon it needs to be paid after any transfer, I’ve read something about 60 days but also something about payments on account and annual tax returns, 

thank you 

CGT needs to be paid in full within 60 days of the disposal. The added complication is the lift interest, and I would recommend taking professional advice as the will probably created a trust and getting that wrong could be an expensive error.

bubby08

The Will did create a trust which will be ended that part is clear I believe in terms of the solicitor. It’s the CGT which is unclear and the solicitor can’t provide much guidance on.