Tax Issue Around A Birthday Present From a Grandparent Who Died Shortly After

[pauljk]

Hi

Last year I received a birthday gift (an antique) that potentially has a taxable monetary value if I were to sell it. I received this gift from my grandmother a few months before she died. If I was to sell this antique, would it theoretically only be capital gains tax I paid on the sale value? Or would there be some kind of hanging inheritance issue? I assume because it was a birthday gift then the full amount would be liable to the rules of capital gains tax?

Any help or assistance greatly appreciated.

Paul

[ULA]

Soeey to hear your grandmother has passed away.

What is the value of the gift?

Tour gramdmotner can gibe a total of £3,000 worth of gifts each tax year without them being added to the value of her estate. This is known as the "annual exemption".

[pauljk]

Hi ULA thanks for replying. The antique is valued at circa £20k, but it would need to go auction.

[PallasAthena]

Is it your liability for CGT if you sell it that you are concerned about? I not an expert on this but the general rule is that for CGT purposes property like this that is gifted to you is valued at its open market value on the date it was given to you (even though you paid nothing for it).. If you later sell it then the difference between its value when it was given to you and what you sell it for (as long as that is an open market sale) is the 'capital gain' that your liability for CGT will be assessed on.

IHT on the gift is the responsibility of the exceutors of your late grandmother's estate. You are not required to pay it.

However the value the executors give to the gift for IHT purposes is the same as the value you should use for CGT.