Acquisition cost for inherited item from a spouse?
Basically the current position is a husband and wife are in a 50:50 partnership.
The husband has found out he has weeks to live. Due to this the business will eventually be sold.
The advice the client's are receiving from elsewhere is
1. For the wife to gift her share to her husband (so no CGT as husband and wife transfer so no gain/no loss).
2. The husband will then leave the 100% of the business to the wife in his will (So no IHT on leaving to his wife).
3. The wife will now have acquired at the current market value from her husband therefore there will be no CGT payable, when it is sold.
I would have assumed that in the circumstances there would have been a provision that the wife would just be treated as having acquired the business back at their initial costs, so effectively she would just get the whole gain in her hands.
Everything I read though, suggests that the CGT could be avoided by using the above advice. If it was this simple though, I would have thought it would have been a very widespread "trick".
Any help would be much appreciated.
- Your fondest calculator memories 1,011 41
- Repair or improvement? 1,384 8
- Does anybody still use a Filofax? 349 16
- What is the reasoning behind HMRC letter re high income child benefit charge? 377 9
- Sale of an investment between group companies 133 6
- Gift to employee 255 5
- Residents Association Corp Tax 277 12
- Investment property where tenant lives rent free 365 7
- I hate HMRC's voice recognition system - The Inept Interrogator 962 21
- Letter from HMRC telling me client passed away 1,939 27
- Car maintenance costs deductible against CT 156 5
- Sage Forecasting - Print filename 304 1
- Unquoted company valuation multiples 66 1
- Joining the flat rate scheme retrospectively 259 6
- private to company car? 301 6
- PAYE Refund Farce At HMRC 868 13
- Question re Career choice... 1,421 9
- Owner/Director consultant plus employment elsewhere 237 7
- Which address 855 10
- What is the best practice for running a roofing company in Sage 218 6
- DTR : TIOPA 2010 Section 42 463
- CTA study material 444
- Sect 102 TMA 1970 316
- Pre incorp expenses 292
- Relief on French Tax Deposit? 254
- Anyone have clients that use Pay4Later to offer customers credit? 244
- Slight twist on employment related securities 221
- How to claim additional losses after mistake in CT return 208
- What is the tax position if I am working overseas but via a UK agency? 195
- Gift Aid after 5 April, before 31 Jan - Tax Credits 135