Inheritance tax??
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deborahcarpenter
Registered Posts: 161 Dedicated contributor 🦉
Hi All,
I have a client who inherited a piece of land from his father in Barbados about 20 years ago. (father was domicile and resident Barbados)
my client (UK resident and domicile) then build a wooden shack on it and used it as a holiday home for himself and his wife only to use.
They sold the land recently for £84000. Can i assume that this is not subject to inheritance tax as it is below the current threshold?
Sorry if this is a stupid question, having a blonde moment!!
I have a client who inherited a piece of land from his father in Barbados about 20 years ago. (father was domicile and resident Barbados)
my client (UK resident and domicile) then build a wooden shack on it and used it as a holiday home for himself and his wife only to use.
They sold the land recently for £84000. Can i assume that this is not subject to inheritance tax as it is below the current threshold?
Sorry if this is a stupid question, having a blonde moment!!
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Comments
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I think you ought to be looking at CGT.....1
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Surely for CGT i would need a purchase price to get to a capital gain / loss figure. Why do you say CGT? There is no acquisition figure as his father inherited it from his father.2
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There will have been a MV in the estate @ time of death ?0
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There was nothing. There was no will. The land was just passed down through the generations, apparently this is common practice in Barbados. I think a phone call to HMRC may be in order to clarify this situation.2
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You would need to obtain the probate value of that piece of land when it passed to your client and the cost of building the "shack" to calculate your client's capital gain.0
