Capital Gains Tax

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kman35
Thu, 13/05/2010 - 17:26

Hi.  I Have been looking for information about Capital Gains Tax and although I have found some information I still do not understand what it is and will it effect me when I inherit my fathers estate.  I would really appreciate if anyone could help me or point me in the right direction of information which would be easy to understand.

Thank you

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Guest (not verified):

Yo yo.

Should you fathers estate exceed the nil rate band allowance you would be subject to IHT on excess.

With regards to CGT, if your father has left a legacy of investments of or property, which are only liquidated sometime after probate is issued, then the beneficiary (you?) would be subject to CGT on the uplift in value from date of probate. Thus, if any investment have increased in value since your fathers death, you would have to pay tax.

of course you have an annual exemption totalling broadly £10,100 per annum to offset gains.

Trust this makes sense.

Take it easy.

Ciao

i

Tue, 18/05/2010 - 15:48
kman35:

We are within the Inheritance level, so that is ok.

CGT: My father left farm and investments.  Probate has now been issued and farm sold.

So, I take from what you have said that if the farm did not increase in value from his death until it was sold then we do not owe capital gains tax........is this the correct assumption.

Thanks for your help

 

 

Tue, 18/05/2010 - 20:25
Guest (not verified):

I would say it is the correct assumption yes. What about the shares?

So long as the probate value and sale value do not differ you wont have CGT to pay.

Wed, 19/05/2010 - 13:25
Guest (not verified):

I am a higher rate tax payer and my wife is a basic rate taxpayer and we both have our names on a buy to let property.

Can this be changed into my wife's name only.

Fri, 21/05/2010 - 20:12