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bigduckontax, Accountant
Category: Tax
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My father owned an office in his sole name, when he passed

Customer Question

My father owned an office in his sole name, when he passed away in 2011 and it was valued for probate. Since that date, the value of the office has increased by approx £295k, my mother who is 82 years old has an income in the 40% band. Can you give me an assessment of her CGT liability.
Submitted: 4 months ago.
Category: Tax
Expert:  bigduckontax replied 4 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

295K - 11.3K [Annual Exempt Amount (AEA}] = 283.7K which will be taxed at 20% so say 57K of tax due. If Mum dies there is no CGT, but the value of the office will be included in her assets and be liable to Inheritance tax (IHT) at 40% on anything over 325K. She can inherit any of her late Husband's unused tax free 325K band also.

I do hope that you have found my reply of assistance.