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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I remarried in 2015 and moved into my wife's home. I then

Resolved Question:

I remarried in 2015 and moved into my wife's home.
I then rented out my (leasehold retirement) flat (value say £50,000).
I accept that I must pay income tax on the rental income.
However will my Estate (daughter) be liable for Capital Gains or other tax on the capital when I die?
Submitted: 9 months ago.
Category: Tax
Expert:  TonyTax replied 9 months ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Customer: replied 9 months ago.
Ok.
I'm 71 years old (if that's relevant)
Expert:  TonyTax replied 9 months ago.

No CGT is paid on assets held at death.

Your estate assets will be valued for probate and whoever inherits the flat will have a base cost for it for CGT purposes equal to its value when you die. Your estate will be liable for Inheritance Tax at 40% on the excess over £325,000. If you are widowed, your executors may be able to claim the unused part of your late spouse's nil-rate band. You can read about that here and here. Potentially, you could have a nil-rate IHT band of £650,000.

I hope this helps but let me know if you have any further questions.

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