CGT/Inheritance tax and investment property

Ellabobbin

Good Evening,

This isn't for a client but for myself/husband and I am going round in circles... maybe some new eyes will help!!

My husband's parents own circa 1.3 million in investment properties, which they refer to as 'the business' though I think it is simply investment property held in their names, which they let out...

We are due to have a meeting to discuss what he and his brother would like to do going forward - sell the entire portfolio, sell part of the portfolio or keep the entire portfolio. Needless to say both sons are looking in my direction!

As far as I see they either sell, get hit by capital gains and give the proceeds to the sons and we hope they live 7 years.... Or they keep them and then there will be an inheritance bill in the long run....

Looking at the HMRC website I can't see that there is enough business for there to be a partnership but I have asked him to check with his parents whether they complete a partnership return...

Any snazzy ideas for the best way forwards most welcome!!

BIG WAL

That's obviously a substantial estate, and in addition it sounds like there isn't enough detailed
information. It may even be your in-laws already have arrangements in place - perhaps a trust of some sort.

This needs expert advice - and I would suggest that - unless they have already done so - a
reputable IFA be consulted who will have specialist training and the in-depth knowledge required. There will be a charge, but with an estate that size good advice is well worth paying for.

Ellabobbin

I would agree!!

My first comment was 'surely your mum and dad have taken advice?!' (They definitely have accountants) .... And my second 'the information they have put in their 'meeting pack' isn't nearly enough to go on with'...

However the in laws aren't always very forthcoming and they seem to be asking what the brothers wish to do, rather than saying 'we've had advice and this is the plan....'

Obviously we want to keep as much as possible out of the taxman's hands!!

I think I will just suggest they ask their parents if they have had advice, whether they discussed trusts (I think they can bounce about 50% of it through a discretionary trust, £125 well spent at a tax cpd course!) and back out gracefully!!!