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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Interests in possession: death and CGT: introduction


It has been a basic principle of Capital Gains Tax since 1971 that when someone dies

  • there is no deemed disposal on death and therefore death is not an occasion of charge to CGT;
  • the executors are deemed to acquire the property at the market value at the date of death. This value is therefore the cost for the CGT computations on any disposal by the executors;
  • if assets are transferred to legatees, including trustees of a new trust or an existing one
    • there is no charge to CGT on the executors, and
    • the legatees are treated as having acquired these assets at the time of the death and at the market value at the date of death.

This is explained in detail in the first part of this volume of the instructions.