First Active Shares wrt recently deceased shareholder

J

jello1000

Guest
Evening All,

I am looking if someone could help with the following. My late grandmother (who passed away recently) has been sent a letter from the revenue for her CGT liability arising from her holding in First Active. Her estate is currently being handled by the family solicitor. My question really is who now is liable for this outstanding tax? Should the letter be simply passed on to our solicitor? Will the tax be deducted from her estate? Or does her liability die with her leaving no outstanding amount due?

Thanks in advance for any assistance,

Regards
 
When the owner of an asset dies then any capital gain to that date also dies and is not assessable for CGT as far as I know. The inheritor of the asset will be subject to CGT on the different between the eventual disposal price and the fair market value on the day that the original owner died. I'm not sure if there are any other (e.g. inheritance tax issues). On what date did you relative die and to whom were the shares transferred via the will?
 
Hi

Thanks for your reply. To answer she died on the 6th September 2004. The shares, (consisting of 450 + 45 bonus shares), are being distribued to a son & daughter evenly.

Regards
 
Given that she died after the takeover payment was made in January 2004 I presume that the outstanding CGT liability remains and must be discharged by the executor out of her estate. Note that there are no shares to be distributed since they were acquired by RBOS as part of the takeover. Perhaps the will was not updated to take account of this event and it is whatever is left from the FA takeover payment after tax that is to be distributed?
 
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