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1. CGT on death of an individual no capital gain or loss arises. Transfers on death are exempt disposala.
But
2. Capital losses in year of death can be carried back on a lifo basis.I am confused that on one side it saying no gain or loss and for 2 its saying carried back. What is it actually ??
Correct there is no CGT on the eventual transfer of the asset from the individual that has died to those that are entitled to the estate. These assets will come under IHT
capital losses that have not or cannot be used (individual is dead) can then be carried back to offset against gains from previous periods.Taking the current year first and so on.
Any tax due in the death year will need to be paid by the estate, this very special carry back reduces the tax liability for the deceased individual.
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