Councils using ‘Intelligence’ to track down low EPC properties and fine £5,00015:08 PM, 29th March 2021
About 2 weeks ago 36
I have never used my CGT allowance as I thought you needed to sell a property to use it. Someone has told me though that it can be used by putting it each year into trust for your children. My understanding is that you have to allocate it to a particular property. Is it the case then that if I have a house which originally cost £100,000 and now costs £200,000, and I allocate my and my husband’s allowances of £22,000 each year, then in under 5 years there would be no CGT to pay?
Another question: if I don’t do this and just wait till I die, would there be CGT and inheritance tax to pay on that property (and others)? If so, I imagine most of the gain would be wiped out, after I have used my inheritance tax allowance on my other assets.
Also: if I do allocate the CGT in this way, does it mean that my children would have to have the pro rata income from the rentals on the allocated property or properties?
I know I will have to speak to an accountant and solicitor about this and get things done professionally, but I prefer to understand more of it beforehand as I have been stung in the past by an accountant’s advice and it is partly because of that that I haven’t acted sooner (as well as the fact that I had no idea the CGT allowance could be used in this way).
I’m also wondering what any drawbacks might be to this plan. If anyone understands this or maybe has arranged something similar themselves, I would appreciate any advice.
I know I will also have to do some IHT planning, but I do not want to lose control of my assets by putting properties into trust at this stage so am not currently sorting this. Also I don’t trust advisers so aim to be as self-sufficient as possible.
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