My client is the remainderman in a will. The will was read in 1999 and life interests were created. One life tenant died and the other gave up their interest. The property was then sold in 2024 proceeds distributed to the remaindermen. Is there CGT payable?
Neville
There’s not nearly enough info here to give a view. For example:
- were the life interests sequential or in parallel
- did either/both life tenants live in the property
- were there assets other than the property
- when was the life interest “given up” and how was it done - by waiver, assignment to the remaindermen or exercise of a power of appointment
- did the remaindermen become absolutely entitled when the life interest was terminated
- did the trustees or remaindermen pay CGT on the sale