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I have a relatively new personal tax client and am receiving conflicting advice in relation to identifying the vendor for capital gains tax purposes in the following scenario. In July 2003 — the client inherited an investment property on his father's death. In December 2004 — the property was sold. In March 2005 — the client entered into a deed of variation in favour of an interest in possession trust for his children (election made under TCGA 1992, s 62(7)).
I have a relatively new personal tax client and am receiving conflicting advice in relation to identifying the vendor for capital gains tax purposes in the following scenario. In July 2003 — the client inherited an investment property on his father's death. In December 2004 — the property was sold. In March 2005 — the client entered into a deed of variation in favour of an interest in possession trust for his children (election made under TCGA 1992 s 62(7)).
The solicitor acting is suggesting that the trustees of the interest in possession should account for the capital gain whereas it is my understanding that the personal representatives are accountable.
Query T16 875 – T.P.
Reply by JdeS:
Whether the personal representatives ought to return the sale in December 2004 depends upon whether it took place during the period of administration of the estate. If the...
