CGT - payable from when in these circumstance?

bicyclist

https://forums.moneysavingexpert.com/discussion/comment/82027934#Comment_82027934

I have found a Notice of Severance document dated four years before dad passed, converting their Beneficial Joint Tenancy into a Tenancy in Common. I think the original conveyance documents (from 1990) may be buried somewhere - would they be helpful? Also, I just re-read mum's will and it does say at the start (after the small grandchild bequest) everything goes to us children with 'equal shares absolutely'.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82027975#Comment_82027975

OK assuming house was worth £240k at that time, and your father was a de facto owner of 50% at date of death, your mother would have been entitled to his entire share in satisfaction of her statutory legacy.

However, @DRS1 is correct, what would be the point of your father severing the joint tenancy in the first place without then making a will, gifting his half elsewhere?

Without a reasonable answer to that question, the only issue to nail down now is a valid reason for your mother's supposed gift to you and your sibling apparently cloaked behind a trust arrangement for which there is no information.

There are gaps in the narrative here the solicitor are duty bound to fill, especially since they are responsible for the TR1.

For them to state they hold no documentation related to that excercise , simply does not fly. If they still insist they can throw no light on the trust, I would escalate a complaint to the SRA on the basis that their lack of clarification leaves you and your sibling in the dark with regard to your potential CGT exposure on sale of the home.

bicyclist

https://forums.moneysavingexpert.com/discussion/comment/82028505#Comment_82028505

I will get on to them later. One last 'might be relevant'… The wording of the Notice of Severance (although I don't know if this is simply boilerplate for that type of document):

“We hold the Property and the future proceeds of sale on behalf of ourselves as beneficial joint tenants, so that in the event of the death of either of us the survivor will become the sole owner.

We have been advised by XXXXXX Solicitors that in order to dispose of our estate in the manner we desire it is necessary for us to convert our beneficial joint tenancy into a tenancy in common, so that we each have the right in future to dispose of our individual interests in the Property and it's proceeds of sale under our respective Wills.

Accordingly, we each of us hereby give notice to the other of our desire to sever as from the date of this notice our joint tenancy in equity over the Property. We hereby separately declare that the joint tenancy is, in consequence, duly severed in equity, and that we hold the Property and the future proceeds of sale as tenants in common in equal shares.

It is our intention that this notice shall take effect immediately.”

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82028525#Comment_82028525

Pretty standard wording, and indicative of a desire to engage in some form of estate planning involving the home.

Your father subsequently dying intestate is inconsistent with the severance, since by reason of dying without a will and the value of his share of the home being well below the £250k statutory legacy, his half reverts back to your mother as if the severance never occured. As I say more questions than answers.