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.
- Personal Pension Relief in the Tax Code 143 2
- Auto enrolment confusion 2,042 47
- CGT on lost shares/scam 370 4
- Setting up a practice 388 5
- Very large share capital by mistake 500 7
- VAT refund if only output tax on first claim 461 4
- 24 month rule and expenses 276 1
- Love is in the air 545 6
- HP agreement in Directors name but payments under company 656 17
- Stamp Duty 294 4
- Physiotherapist and vat and agency work ( one for Les Howard???) 238 4
- I am 34 years old, am I too old to start a career in Accounting ? which is the best way to pursue it 1,810 21
- Another Sneaky Tax Hike! 595 5
- Incorporation of gp practise 277 1
- Sage Instant Accounts Complete De-install problem 263 9
- Client Paperwork Retention? 574 13
- Paid staff their normal salary instead of SMP 583 7
- Tax Overlap Reporting 391 4
- Pay rise - how to enter in Moneysoft 396 9
- Reimbursing director travel costs 459 6
- DTA tie-breaker issue 303
- Tax Implicatins on a Directors Loan 292
- CGT for NOn UK residents 280
- Employer's pension contribution - need to be PAYE registered? 276
- What are the tax implications of overseas sales through a UK based company? 254
- profit or loss on furnishings and deed of trust 240
- Apprenticeship Levy 238
- Tenants in Common - Actual % split not written down 225
- Capital Gains personal representatives 221
- Discretionary payment to sick employee 215