probably simple

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.

 

Comments
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Its a double whammy

LyneT |
LyneT's picture

ouch

John Webb |
John Webb's picture

Yes thats right, if house is

LyneT |
LyneT's picture

That's a bit sexist Lynne!

George Attazder |
George Attazder's picture

Fair cop

LyneT |
LyneT's picture