Scenario is H&W owned a property acquired in the 80s as JT, W passed away recently and H signed a DOV to gift W’s share of the property to their children. H has now transferred his share of the property to his children a couple of years after W’s death. H had moved out of the property to live with daughter prior to W’s death. So there would be no CGT on W’s share because of the uplift in death? For reporting CGT on H’s share would the gain be acquisition cost of H’s share in the 80s deducted from the value of his share at the date of transfer? Would a claim need to be made for PPR? Not automatic as he had ceased living in the property? Thank you
Assuming under the DoV “reading back” for CGT was adopted then children would acquire W’s 50% at probate value. If no reading back then children acquire that interest at MV at date of transfer.
H’s base cost for CGT of his 50% will be MV as at 31 March1982 if purchased on or before that date or actual acquisition cost if purchased later than this.
Yes claim for PPR required as not all the gain is exempt.
Malcolm Finney
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