Does a widow have to pay capital gains tax

Hi all, my mother in law inherited a 25% share in the family company 4 years ago after her husband died. It trade for another few years and finally closed down. There is a building which may be sold soon and cash in the business account, she is worried that if she receives the proceeds from the sale of the assets she may be liable for CGT, seeing as it was inherited from her spouse will she need to pay CGT on any proceeds of the sale. Any advice would be appreciated

nompere

She needs to talk to her/the company's accountant.

CGT following a death and the winding up of business is rarely straightforward.

Thanks nompere, we have set up a meeting for a couple of weeks time but there is family politics that are working against her and i just wanted to reassure her that any money that will be disbursed would have no CGT liability as her shareholding was the result of her husband passing....

nompere

It might be unwise to give her that reassurance.

barneystinson

nompere wrote: »

It might be unwise to give her that reassurance.

+1

nompere

While I think the OP is right to be worried about CGT, I suspect he is actually worrying about CAT, which is a completely different tax. It is usually the case that there no CAT between spouses.

dearg lady

No it was the share in the company she received form her late husband, the CGT liability relates to gains made on the sale of a building owned by the company. I would imagine the company will indeed pay CGT on the sale of this building.

Alan Shore

When her husband died she would have inherited the shares at a value on the date of death. This is compared to the sales proceeds or value of the company if its being liquidated. If the current value of the company exceeds the value on acquisition then there may be a liability to CGT.

I'm sure that the accountant or solicitor will have a value attributed to the company at the date of death.

Mr. Incognito

Dear Lord you should all know better- closed

Banned.