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.
- IT advisory questions? 258 7
- signature required 540 22
- Use of home query 74 1
- Pratice Management Software 158 2
- How can I deal with an unethical accountant? 238 6
- Error in audited accounts 93 1
- Vat registration exception 200 3
- CIS software 86 2
- Homing sandwiches 472 11
- CT600 129 3
- Director appointment not valid - any observations? 184 7
- Settlement discount 148 4
- Director Personal Bank Account in company's books 518 9
- How do I undo the work of a Macro in Excel 187 5
- A number of Clearbooks VAT return issues! 176 2
- VAT on hotel payments received in advance 136 2
- Norwegian p45, which UK Tax return does it go into 221 10
- Left UK in 2006 but did not declare rental income since 2009 140 1
- VAT rate charged by surveyor 192 2
- Related Party Transactions 132 2
- Auto enrolment excuses 1,248
- Feedback on accounts production software for IFRS 820
- Add T&Cs to Sales Order in Sage 525
- Digita Hosted Software 341
- Credit where credit's due....... 317
- Buying goods in US and selling them to company in US 243
- Flat rate VAT- other income calculation 202
- TheTax Donut 185
- Double taxation relief - same income, different individual 166
- Corporation Tax return - more than one trade 165