devon

Is it possible to claim the three year care home CGT relief when the property is held within an interest in possession trust?

On the HMRC’s website in The Trust and Capital Gains – Work out your Tax Guidance under the heading “If assets are taken out of a trust” it states: Sometimes an asset might be transferred to someone else but CGT is not payable. This happens when someone dies and an interest in possession ends. As such, each parent had a lifetime in possession trust with myself and sibling named as trustees, and both parents are now deceased, my interpretation is that CGT will be payable on any gain from the date of the death of the second parent, February 2023 to the sale of asset. Inheritance tax has already been paid on the estate. Is this interpretation correct or is CGT payable on gains from when the asset was transferred into the trusts? If the latter then surely the estate is being double taxed?