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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
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

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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?

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 1 year ago.
I'm 71 years old (if that's relevant)

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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