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Legatees’ capital gains tax position


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024

Legatees’ capital gains tax position


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024
imgtext

This guidance note explains the capital gains tax consequences for beneficiaries (also known as legatees) when they receive distributions of capital from deceased estates. The note should be read in conjunction with the following guidance notes:

  1. •

    Deceased’s capital gains tax position

  2. •

    Capital gains tax during administration

Transfers to legatees

For capital gains tax purposes, a ‘legatee’ is any person who takes an asset under a testamentary disposition, or on total or partial intestacy. The asset may be a specific gift under the Will or it may represent value to which the legatee is entitled. The same basic rule applies whether the ‘legatee’ takes the asset absolutely or as trustee for someone else. It includes a person taking a gift by way of donatio mortis causa, which is a gift the deceased made in expectation of death.

The basic rule is that if personal representatives (PRs) transfer an asset to a legatee under the terms of the Will or intestacy, no chargeable gain (or loss) accrues to the PRs.

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  • 15 Nov 2024 07:31

Home/ ½Û×ÓÊÓƵ Guidance/ Trusts and Inheritance Tax / Advising on estates — income tax and CGT

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