Capital Gains tax

ameliarate

Hi, can anyone help with a quick question please.
when my sister died her property was left in a discretionary trust. Her son was the main beneficiary and I was also a beneficiary. My nephew subsequently died and the property was dispersed to the other beneficiaries. I inherited a house which I have been renting out but now wish to sell. 

Is the capital gains tax calculated on the value at the date my sister died or the date I inherited it he house from the trust. 

Thanks, 

Keep_pedalling

I would have thought there should have been some CGT payable by the trust when it was wound up, was that the case?

ameliarate

Keep_pedalling said:

I would have thought there should have been some CGT payable by the trust when it was wound up, was that the case?

I am not sure but I don’t think so. I would have to check with the Accountants who were the Trustees. 

Jeremy535897

Depends if the gain was held over.

ameliarate

Jeremy535897 said:

Depends if the gain was held over.

What does that mean please? Is it whether CGT was paid when the trust was wound up?

Jeremy535897

ameliarate said:

Jeremy535897 said:

Depends if the gain was held over.

What does that mean please? Is it whether CGT was paid when the trust was wound up?

Yes. When a discretionary trust appoints assets out to beneficiaries, the trustees may hold over the capital gain. Both beneficiary and trustees have to sign the claim.

ameliarate

Jeremy535897 said:

ameliarate said:

Jeremy535897 said:

Depends if the gain was held over.

What does that mean please? Is it whether CGT was paid when the trust was wound up?

Yes. When a discretionary trust appoints assets out to beneficiaries, the trustees may hold over the capital gain. Both beneficiary and trustees have to sign the claim.

Checked with the accountants and it was held over. Thanks. 

Jeremy535897

ameliarate said:

Jeremy535897 said:

ameliarate said:

Jeremy535897 said:

Depends if the gain was held over.

What does that mean please? Is it whether CGT was paid when the trust was wound up?

Yes. When a discretionary trust appoints assets out to beneficiaries, the trustees may hold over the capital gain. Both beneficiary and trustees have to sign the claim.

Checked with the accountants and it was held over. Thanks. 

It would therefore appear that the capital gain will be based on the value at the date of death, but you should confirm this with the accountants, in case the property attracted some sort of relief, like main residence relief, during their ownership.