CAT/CGT liability?

[Emily123]

My partner's mother died, leaving him nothing in her will. However separate to her will the solicitor had a letter from her stating that it was her wish that he could have part of the land she had previously (i.e. before she died) transferred to his sister as a site. This is now going through. What are the tax implications? Is it a pure CAT from his sister to him, or can he in some way get the allowances from mother to son?

Also at the moment it is farmland but he intends to sell it as a site. If he manages to get planning permission I presume there would be CGT on the difference between what it is currently worth and what he will hopefully get for it. Are there any different rules - eg rates lower if he holds on to it for a year etc??

And one last question - what are the rates and limits (or where is the best place to see them)?

Thanks for your help.

 

[ubiquitous]

You should get specific professional advice on this, both from your solicitor on the legal aspects and from a reputable accountant or tax advisor on the tax aspects. There is a possibility of significant tax savings for the beneficiaries if they adopt a proper tax planning strategy - without such a strategy, properly executed, they will probably end up paying more tax than would otherwise have been necessary.

 

[Taximan]

Agree with ubiq this is definetly one for as solic as what you said is not clear. If the site was transferd prior to death it is a gift not an inheritance between daughter and mother. Daughter now owns the asset how can the mother then bequeath as asset that she no longer owns?

The sister might out of duty to her dead mothers wishes transfer to the brother his share but I can only see it being a transfer from sister to brother. The thresholds are roughly 460,000 Mother to son or 45,000 sister to brother. But it is defo a case of professional legal advise, the tax is easy after that