Commentary

I4.536 CGT uplift on death and valuation

IHT, trusts and estates

I4.536 CGT uplift on death and valuation

I4.536 CGT uplift on death and valuation

For CGT purposes, on a person's death, the assets of which he was competent to dispose will be deemed to be acquired by his personal representatives. They will acquire the assets at an amount equal to their market value at the date of death but the deceased shall not be deemed to have disposed of the assets1. For the meaning of 'competent to dispose' see TCGA 1992, s 62(10) — broadly, this is all assets the deceased could have left by Will as well as property held as joint tenants.

Thus there is no CGT charge on death, and the benefit of any increase in value in an asset between the deceased's acquisition of it and his death passes to his personal representatives free of CGT, giving a base value uplift on death. In addition, if a claim for holdover relief (see I3.612) had previously been made in relation to the disposal of the asset to the deceased, there will be no CGT charge attributable to that held-over gain if the deceased still possesses the asset when he dies.

Calculating the market value

The market value at which the deemed disposal takes place is the value established for IHT purposes, including any relief for sale at a lower price after death2.

However, if the value of the asset is not

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