Simplify Inheritance No CGT Gifting Property But IHT On Base Cost
Published / Last Updated on 14/08/2019
Office for Tax Simplification Recommendation (July 2019)
The government should explore options for simplifying and clarifying the rules on liability for the payment of tax on lifetime gifts to individuals and the allocation of the nil rate band. Where a relief or exemption from Inheritance Tax applies, the government should consider removing the capital gains uplift and instead provide that the recipient is treated as acquiring the assets at the historic base cost of the person who has died.
So let’s just pass on property capital gains tax free but the beneficiary then pays inheritance tax on the original base cost. IHT at 40% is higher than CGT at 18% + 28%. Surprise, surprise!
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