Parents gave their children the family home and lived in it until they died. The transfer by gift was made by solicitors. One child lived in the family home and was a carer for them. The IHT situation is understood and is being dealt with.
I understand that one child living in the property will have the benefit of PPR, the remaining child could have Capital Gains Tax problems down the line as the house will not be sold and the unwritten instructions from the parents was that the second child protect the other from any potential marriage/divorce problems with the house. Is it fair to presume that the death of the final parent now means that the “trust” made by the gift in 1993 has now come to an end and that the gain arising in the period that the children owned the property may be exempt following TCGA 1992 S225. If this is correct, presumably the IHT value on death as a Gift with Reservation will be the starting value for the non PPR child. Presumably it would be best to complete an Income Tax Return showing this on the non PPR child?