Readers’ forum: Is there a capital gains tax problem on sale of marital property?

My clients (and friends) are Mr and Mrs B. They are in their 70s.

Their only residence is worth £1.5m and has a large gain if sold. Powers of attorney are in place and there are two married adult children.

Sadly two years ago Mrs B suffered a psychotic episode and was sectioned and is now permanently in hospital care. Fees are paid by the state because of the sectioning so there are no issues in that direction. Mrs B has minor pensions less than the personal allowance. Mr B’s pensions put him in the higher rate bracket.

Mr B wishes to sell the property to give the excess funds to his children. I am assuming that the financial rights of Mrs B under the power of attorney are being respected. Originally I assumed that there would be no CGT problem as they were still married. However my...