CGT annual exemption for estates

Trusts Discussion
1

Can anyone settle an argument I’m having with another practitioner please. My understanding is that an estate will be given an CGT annual exemption for the year of death and the subsequent 2 tax years. This is stated quite clearly in both the legislation and guidance.

I am being told that apparently in some cases, HMRC will apply the 3 year rule as being 3 complete tax years after death. I have never heard of this. Has anyone come across it? Thanks.

2

I haven’t come across any such practice.

Malcolm Finney

3

I suppose if you died on 6th April…

4

Thank you both. I thought as much but wanted to check I wasn’t going mad.

5

Definitely not, it’s the tax year of death and the two subsequent tax years.