LittlEbear10 Bee

Is capital gains tax payable on a property, bought with a cash gift, that is a person’s primary residence and only home? Thank you.

Thank you. So does this mean when selling a property bought with a cash gift, the property will be subject to capital gains tax whenever it’s sold despite the number of years passing? What percentage of the property sale would have to be paid in capital gains tax? Is it anything above the original value of the property, i.e., property is £230k then sells for £270k five years later. How much capital gains tax would be payable? Potentially this cash gift could be taxed around 60% if benefactor dies within 3yrs ( @40%) then capital gains tax at whichever point property is sold? @20%? Is this the same if a property is bought with inheritance money after death?

If an estate is to be split into three but one beneficiary receives a cash gift which incurs 40% IHT tax due to the benefactor passing away three years prior to giving the gift, how is the estate calculated? Is it calculated in this way? Total estate upon death + gift = X Is X divided by three with one share ( the share of the person who received the gift) being reduced by the 40% tax payable on the gift? If the cash gift was used to buy property, will any increase in the value of the property be added to the original amount of the gift resulting in a higher IHT payment, still taxed at 40% but higher gift amount so higher bill? If property value is taken into account, for how long would this be? Would it be up to the date of the benefactors/ gift givers death? Thank you.

When using a cash gift, given by a parent before death, to buy property will there be more IHT to pay if the property is at a higher value when the parent passes away?