UK Capital Gains Tax Query - Second Property

[spencer1997]

Hey r/UKPersonalFinance community,

I need some guidance on a UK Capital Gains Tax situation for some relatives:

X bought a property for £2,000 in 1960 living in it for c. 10 years.

X married Z in 1980s, neither have lived in the house since and the house has been used to provide rental income.

In c. 2015 X transferred 50% of the property to Z in order to take advantage of Z’s personal allowance for income tax. No CGT payable as inter spouse transfer.

X is currently approaching 90, suffering from poor health and, to be blunt, likely to pass in near future.

What would the CGT position be for Z if they were to sell property (for say, £300k) after X’s death in the following scenarios:
A. The house stays in joint names, or
B. Z transfers back the 50% to X, making him the sole owner again.

Appreciate any insights!

 

[bfall]

@spencer1997 Better bet is to transfer back to X then ensure spouse inherits it.

No CGT on transfer back to spouse.

No IHT on death - transfer to spouse.

Limited CGT on sale as value on death is acquisition cost.

All goes pear-shaped if spouse dies first (it can happen!)

 

[spencer1997]

@bfall !thanks

Thank you. That's what I was leaning towards but wanted to make sure I wasn't missing anything!

As a cheeky follow-up:

If X were to die before they had a chance to transfer Z's half back to X, I assume Z be liable for CGT on the gain from transfer to her (c.2015) until the point of sale on "their" half and from the point of inheriting "X's" half until the point of sale?

And...

If Z were to unexpectedly die first but after the transfer of their share back to X AND X were sell the property, then X would be liable for CGT on the gain from its value in 1982 (unknown)?