Property CGT - Case Study
The People
CH died leaving a Will appointing two of his children as executors and splitting his estate between his four children.
The Problem
CH owned a property. At the date of his death, the property was valued at £310,000. Planning permission was obtained for improvements to the property and an offer was accepted for £335,000. A gain of £25,000 had been made and CGT of about £3,000 would be payable by the estate.
The Solution
CH’s executors transferred the property to the four children equally. When the property was sold, the gain of £25,000 was split between each of the four children. Each of them had their full annual allowance (£10,100 each) and so no CGT was payable.
Who to contact
Paul Tobias
Senior Partner, Head of Trusts & Investments
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