H’s Will contained NRB trust. Trustees took a charge (index linked) over the matrimonial property to the value of £125,000. The property was then sold 3 years later. I have worked out that there would be a small amount of income tax to pay on the repayment of the charge to the Trust. My issue though is that the £125,000 was not repaid to the Trust in full when the property was sold in 2016 (instead £79,000.00 went back to the trust) and no additional charge was taken over the replacement property bought by W in her sole name. W then died in 2019. Do I now pay income tax on the outstanding £46,000 index linked from death of H to death of W?
Phoenix Legal Group