A new client has to do a capital gains tax report & pay tax on his share of a property sold last week. He acquired 25% of property, along with a sibling, by means of a Deed of Variation done after father's death - 50% of property was clearly less than the nil rate band & no property valuation was done at the time of death or when the Deed of Variation was done. I had thought a backdated valuation needed to be done as at the date of death, but client was told a while back by a solicitor that the valuation should be done at the date of the transfer. Deed of Variation was done more than a year after death and there is likely to have been a significant property increase in that year so the valuation date is important. Can anyone confirm that the transfer date is the right date for CGT? The valuation is also going to be relevant for inheritance tax as & when the client's mother dies as there will be a bit of nil rate band left over from the father's death.
13th Apr 2021
Query on acquisition date for CGT
Deed of variation done to leave 50% of property to children
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