Apologies to you all if I am asking a basic question but being relatively new and steering clear of IHT whilst I take my ATT (i've got ACCA) exams I normally turn away clients who ask for more complex IHT issues but I think that I know the answer to this IHT/CGT question and so would like to check my understanding if I may.
Client's parents signed their house over to him and his brother in 1997. (purchased 1986 £40k, 1997 value £60k (ish), value now £160k). Parents remained there eversince, no rent charged to parents.
Father died in 2005 and mother has lived there and still does now. Her estate only has £50k of cash and shares in it and she gets £8k of pension income pa from state and private schemes.
My client and his brother want to sell the house now and use the cash to help look after her (take it in turns with occasional stints in local care home)
What are the tax implications? As I see it there is a cgt gain for my client and his brother based on the gain since 1997 when the house was transferred in 1997 but as I said I am new to this and so am sure there are loopholes I have missed.
Looking at it, IHT would not be an issue at all as estate is minimal but it seems they transferred it to try and avoid losing it to long term care costs
I may well seek help from another local firm but in the meantime if anyone could assist it would be good.
- HMRC interview re client authorisation 447 4
- VAT on new builds 90 2
- Cost of demolition of a shed - revenue or capital? 651 16
- Becoming a subcontractor to Accountancy Practices 329 2
- Rental business through company without owning the property? 100 1
- Pensions Auto-Enrolment when no computer/internet access 89 1
- Bank Interest Held by Solicitor During Divorce 102 1
- Are accountants facing a doomsday scenario? 1,788 26
- Missing tax return 137 2
- Are you going to Tick and Bash on 21 May? 902 24
- CG on Spanish property disposal 268 8
- SSAS Pension scheme 150 2
- Quick Income tax calculation question! 543 18
- Physiotherapy 224 3
- Inflation and fees 1,201 20
- Capital allowances not claimed 146 3
- Changing shareholding ratio 267 8
- CGT help please 132 1
- How much would you charge for an interim audit? 334 7
- Cashflow forecasting software 122 2