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Sale of property after the execution of a deed of variation.
Father (F) and mother (M) owned a house in equal shares. After F died in 2013 M’s mental capacity deteriorated and a deed of variation was executed so that F’s share of the house was left to brother (B) and sister (S) instead of M. This was not done for tax reasons and I am investigating whether the tax elections were made.
In late 2015 M went to live in Ireland with B who cares for her. The house is under contract for sale and S wants to know how the sale will be treated for tax.
In my view S will be taxed on 25% of the gain arising either from the date ofF’s death or the date of the deed of variation depending on whether the capital gains tax election was made: it is a house she has never lived in....
