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CGT & IHT

This topic has 1 reply, 2 voices, and was last updated 14 years ago by Tax Tutor.

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May 30, 2011 at 10:16 pm #48523
susu123
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Hi, when a person makes a lifetime transfer to another person, say a vase worth £100,000, then they survive 7 years after making the gift and the vase is exempt from IHT. However, at the time the gift is made, do they have to pay CGT on it? Gifts are chargealbe disposals in the CGT scope. I’m just surprised how much tax people have to pay just by giving things away. Many thanks.
May 30, 2011 at 11:50 pm #81974
Tax Tutor
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Yes capital gains would have to be considered at the time of the gift. However it is unlikey the examiner will test CGT and IHT in the same question for this sitting. IF he does then deal with CGT issues independently to IHT issues
Hope this helps
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