A mother gave an investment property to her two children in 1990. The children knew nothing about this until the mother died in May 2016 and up until her death, she had continued to receive the investment income. I do not know if it is relevant but the mother died with a substantial estate and IHT has been sorted by her solicitors. I am trying to find out how the mother's accountants dealt with the disposal at the time of the gift. It would appear to have been a failed PET and the CGT appears to have been left simply as a future problem for the children. I am making enquiries in case it is relevant. The children have sold the property and need to declare the disposal for CGT.
Is the market valuation for the purposes of the CGT taken as at the date of the gift or at the date of the mother's death? As the children did not start to benefit from the investment income until the mother died, I suspect the latter or is it more complicated? Also if in the case of the latter, if IHT was paid on the GROBs, must that be reckoned in the valuation to avoid double taxation?