My question relates to whether a Capital Gains Tax liability can be avoided or mitigated on a gain that arose on a property that could not be sold whilst the estate was in dispute. It was and still is occupied by one of the litigants and beneficiaries.
I will try and be concise as possible, but the facts are as follows:
A client’s relative died in 2013 leaving her house then worth £475,000 among 10 residuary beneficiaries, one of whom (D) is occupying the house. A dispute ensued as a later Will was submitted to probate by D (written by him) when the tastatrix’s capacity was at best questionable.
Before reaching Court, the parties agreed to settle on the basis that D shall receive 48% and the others the remaining 52%.The court order states that D can remain in occupation until no later than 1st February 2017.
It was also agreed that the original Will be submitted for probate. The executor has received an offer of £730,000 and so would like to know if there is any way round the CGT liability.
He appreciates that the property can be assented to the beneficiaries before it’s sold which only partly deals with the problem and in any event finds this undesirable in the circumstances.
Is there any other way of avoiding or minimising the liability? Any advice or suggestions would be much appreciated. Alternatively, if anyone can suggest a CGT specialist that I can refer the client to I would appreciate it.