- A Spanish fandango - GROB/POAT

The deceased, died late 2023, UK domicile and resident, provided the funds for the purchase of a Villa in Spain in 2014 with the legal title to the Villa being in his adult children’s names. The deceased paid significant sums for the renovation of the Villa from his UK assets via a UK account to a bank account in Spain in his children’s name. The deceased, although owning another property in Spain owned prior to the purchase of the Villa and retained thereafter, lived, whilst in Spain in the Villa and paid utility and ongoing bills, funded from his UK bank and transferred to Spain, from a combination of the Spanish account in his children’s name and from a Spanish account in his name. Some of the children spent holidays at the Villa. In the circumstance I would view that the Villa represented a straight GROB , the placing of the Villa in the children’s name being a perhaps naïve attempt to avoid IHT. I intend to include the market value of the Villa in the estate at date of death. As the Villa is being sold I view the CGT from acquisition to sale will fall on the children with no uplift to the death value. I would think the renovation costs allowable. Any alternative views or comments?

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