Probate value for property

ahfat41

Keep_pedalling said:

ahfat41 said:

He gave £42,000 to his son, won’t that be deducted from his NRB. Do I understand on my death when the children inherited the house and decided to sell it there will not be capital gain to pay. Thanks

Yes, it will reduce the transferable NRB and there will be no CGT on any gain between the two deaths.

Keep_pedalling said:

ahfat41 said:

He gave £42,000 to his son, won’t that be deducted from his NRB. Do I understand on my death when the children inherited the house and decided to sell it there will not be capital gain to pay. Thanks

Yes, it will reduce the transferable NRB and there will be no CGT on any gain between the two deaths.

Am a bit dim, I do not understand there will be no  CGT tax. My understanding is when the house is sold there will CGT, please explain. The house will be sold. Thanks

jem16

ahfat41 said:

Keep_pedalling said:

ahfat41 said:

He gave £42,000 to his son, won’t that be deducted from his NRB. Do I understand on my death when the children inherited the house and decided to sell it there will not be capital gain to pay. Thanks

Yes, it will reduce the transferable NRB and there will be no CGT on any gain between the two deaths.

Keep_pedalling said:

ahfat41 said:

He gave £42,000 to his son, won’t that be deducted from his NRB. Do I understand on my death when the children inherited the house and decided to sell it there will not be capital gain to pay. Thanks

Yes, it will reduce the transferable NRB and there will be no CGT on any gain between the two deaths.

Am a bit dim, I do not understand there will be no  CGT tax. My understanding is when the house is sold there will CGT, please explain. The house will be sold. Thanks

There will be CGT due from the period between the 2nd death and when the house is sold. So if possible use the higher valuation for private purposes unless it takes your into IHT territory. 

Keep_pedalling

jem16 said:

ahfat41 said:

Keep_pedalling said:

ahfat41 said:

He gave £42,000 to his son, won’t that be deducted from his NRB. Do I understand on my death when the children inherited the house and decided to sell it there will not be capital gain to pay. Thanks

Yes, it will reduce the transferable NRB and there will be no CGT on any gain between the two deaths.

Keep_pedalling said:

ahfat41 said:

He gave £42,000 to his son, won’t that be deducted from his NRB. Do I understand on my death when the children inherited the house and decided to sell it there will not be capital gain to pay. Thanks

Yes, it will reduce the transferable NRB and there will be no CGT on any gain between the two deaths.

Am a bit dim, I do not understand there will be no  CGT tax. My understanding is when the house is sold there will CGT, please explain. The house will be sold. Thanks

There will be CGT due from the period between the 2nd death and when the house is sold. So if possible use the higher valuation for private purposes unless it takes your into IHT territory. 

The current valuation does not impact any calculation for CGT in the event of the OPs death. CGT will only come in to play if the house sells for more than the valuation at the time of the OPs death.

Because the OP maintains beneficial ownership of the whole house and the children (remaindermen) do not actually inherit until her death then there is no cGT liability for the trust or the children.

jem16

Keep_pedalling said:

jem16 said:

ahfat41 said:

Keep_pedalling said:

ahfat41 said:

He gave £42,000 to his son, won’t that be deducted from his NRB. Do I understand on my death when the children inherited the house and decided to sell it there will not be capital gain to pay. Thanks

Yes, it will reduce the transferable NRB and there will be no CGT on any gain between the two deaths.

Keep_pedalling said:

ahfat41 said:

He gave £42,000 to his son, won’t that be deducted from his NRB. Do I understand on my death when the children inherited the house and decided to sell it there will not be capital gain to pay. Thanks

Yes, it will reduce the transferable NRB and there will be no CGT on any gain between the two deaths.

Am a bit dim, I do not understand there will be no  CGT tax. My understanding is when the house is sold there will CGT, please explain. The house will be sold. Thanks

There will be CGT due from the period between the 2nd death and when the house is sold. So if possible use the higher valuation for private purposes unless it takes your into IHT territory. 

The current valuation does not impact any calculation for CGT in the event of the OPs death. CGT will only come in to play if the house sells for more than the valuation at the time of the OPs death.

Because the OP maintains beneficial ownership of the whole house and the children (remaindermen) do not actually inherit until her death then there is no cGT liability for the trust or the children.

Yes I'm aware of that. However the OP seemed to be asking about CGT due on her death and the house is sold by the children.