M
Martin
Hi
Can't find an answer on this from IR site - can anyone help, please?
Elderly widower X gifts his house to his 2 children, but continues to live
there alone for 5 years (rent free) before moving to a residential care
home. So the IHT PET 7-year clock starts when he moves out. The children
immediately start to let out the house.
X dies 2 years later, giving rise to IHT. After another 5 years, the
children sell the house - potentially a CGT liability for them.
My questions are:
1) what is the value of the house for IHT purposes - the value when gifted,
or the value when X moved out and the "clock" started? (I assume it's the
latter)
2) what is the original cost of the house for the subsequent CGT
calculation - the value when it was gifted or the value when X moved out?
TIA for any help / links.
Can't find an answer on this from IR site - can anyone help, please?
Elderly widower X gifts his house to his 2 children, but continues to live
there alone for 5 years (rent free) before moving to a residential care
home. So the IHT PET 7-year clock starts when he moves out. The children
immediately start to let out the house.
X dies 2 years later, giving rise to IHT. After another 5 years, the
children sell the house - potentially a CGT liability for them.
My questions are:
1) what is the value of the house for IHT purposes - the value when gifted,
or the value when X moved out and the "clock" started? (I assume it's the
latter)
2) what is the original cost of the house for the subsequent CGT
calculation - the value when it was gifted or the value when X moved out?
TIA for any help / links.