I have a client who’s estate is likely to exceed £2.2 million and my understanding is that the RNRB will therefore not be available.
Hen is a widow and lives in a substantial property which has been subdivided to provide for 20+ leasehold flats retaining the freehold. The Client and his daughter also live in part of the property and effectively manage it as a business.
Apart from lifetime giving are we just left with a potential claim for BPR? Is there any merit in him transferring any assets to his daughter now? If so what are the CGT implications? Would a Family Business arrangement assist?
BPR seems unlikely. Sounds as if the business is a property letting business [s105(3)]. Also see Pawson [2013]; Zetland [2013] and Best [2014].
Whilst BPR refers to a “business”, gift hold-over relief for CGT [s165] refer to “trade”, so again hold-over seems unlikely to be available.
Presumably widow entitled to former spouse’s unused RNRB. In which case for 2017/18 aggregate available RNRB amounts to £200,000 in which case no restriction if estate below £2.4m?