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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7564
Experience:  FCCA FCMA CGMA ACIS
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My mother recently died, she was separated from my Father

Customer Question

My mother recently died, she was separated from my Father but not divorced. She put her flat in my name in 1994. The value then was £28,000. She continued to live in it until her death in Dec 2019. I have just found out it was transferred into my name she did to avoid my father who has since died having any claim on it. It is now worth £120,000 It is not liabke to inheritance tax as the value is under the threshold and it falls under the 7 year rule. I would like to sell it. I now realise I am liable to CGT. As it is classed as a gift with reservation. Is there a way I would not be liable for CGT as I didn't know it was in my name. Her will states everything including property is left to me. The whole estate is below the IHT threshold if I include the flat.
Assistant: Have you talked to a tax professional about this?
Customer: Not yet.
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: Don't think so
Submitted: 13 days ago.
Category: Tax
Expert:  bigduckontax replied 13 days ago.

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

 

The 7 year rule does not apply as it was a Gift with Reservation, she remaining in residence. Not that that matters as the value is within the tax free amount of 325K. I assume that this is not your sole or main domestic residence?