Assent and CGT/SDLT

Specific legacy of property, subject to IHT of £50,000 payable by the legatee. The executors will not assent until IHT is paid. If the legatee gives them £50,000 to pay the IHT, is this treated as a sale for CGT/SDLT purposes?

Simon Northcott

No, for SDLT purposes the transaction will not be considered to be a sale. The payment of IHT attaching to the gift under the will does not constitute consideration for SDLT purposes [FA 2003 Sch 3 para 3A(1)]. The IHT charge is simply a condition of the gift.

Similarly for CGT.

Malcolm Finney

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