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Hello Jilly,
For capital gains tax purposes lifetime gifts are taxable but gifts on death are not
The Answer says True
But how the lifetime gift not taxable on death?
Thanks,
you have your terminology mixed up.
CGT is a tax on assets sold or gifted
IHT is a tax on the diminution of value.IHT on PET’s – gifts to individuals is exempt as long as the individual lives 7 years.
That same asset gifted will therefore be taxed to CGT unless gift relief can be claimed.You cannot pay tax twice on the same transfer/gift.
So when someone dies IHT is the prominent tax and therefore CGT is not applicable.It is very important that you do not get these two taxes mixed up – learn each one carfeully
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