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Original poster

Executors v beneficiaries

6 replies

Cassavaflower · 30/05/2022 07:40

Hello,
I can't get a proper answer on this, solicitor says ask accountant, accountant says ask solicitor!
Dealing with Dad's estate and the value of the four houses has gone up. Two have already sold so is it worth transferring the other two into beneficiaries' names?
We would have to pay more tax to Hmrc but less if it went through as capital gains? We are 4 executors and beneficiaries. Thanks

OP posts:

BritInUS1 · 30/05/2022 07:51

What's the ultimate goal with the properties?

Are they all going to be sold or are they going to be rented out?

Original poster

Cassavaflower · 30/05/2022 08:05

Two already sold, one sibling is buying us out of one property- he was living in the house that dad owned- and another property still to sell.

OP posts:

messybutfun · 30/05/2022 17:05

IHT has to be paid on the value of the estate over the nil rate bands. Selling or transferring the assets that are part of the estate will not change that. Unless they go to someone who is exempt, i.e. spouse.

BadgerFace · 30/05/2022 19:29

Assuming that HMRC accept your date of death property valuations then if there has been a rise in value since date of death, transferring the properties to the beneficiaries before sale can mitigate the capital gains tax if each beneficiary is not otherwise utilising their own capital gains allowance. An accountant who practises tax really should be able to help you with this…

Badbadbunny · 30/05/2022 19:43

An accountant who practises tax really should be able to help you with this…

Not really. IHT is a pretty specialist area of tax and you're bog standard small firm accountant doing accounts/income tax returns won't be doing much of it, if anything at all. They're not going to spend time and money keeping their knowledge up to date if they only get one client asking for IHT advice every few years.

Aubree17 · 01/06/2022 19:49

What exactly is your question?

IHT is due on the value of the estate. Regardless of what you do with the assets afterwards.

CGT is only paid on the increase of value of the house from the date of inheritance to sale. And only then in certain circumstances. If it was the owners main residence no CGT is payable.

So your plan shouldn't affect the tax currently due.

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