I have client with Pre 2006 FURBS. It was funded with Employer cash contributions and the trustees bought some land/commercial property. This is standing at a capital gain. I understand that the FURBS would be free from IHT on the client’s passing, but I’d be grateful for any comments on the CGT position for the land/commercial property. Will the value be uplifted the market value or would CGT be payable and what value would the beneficiaries acquire it at?
The normal CGT calculation would apply, 28% residential - 20% for other assets. £6,150 CGT allowance.
Contributions Pre 2006 are free from IHT.
Id seek professional pension advice as the rules can prove tricky.
Its my understanding the normal costs can be offset - purchase, selling, legal and substantial improvements.
Richard C. Bishop