Tristan Noyes explores some of the lesser-known tax rules applicable on death.â¯
As well as being the two certainties in life, death and taxes often go hand in hand. This article highlights how they interact in certain instances.
Tax-free uplift
There is no capital gains tax (CGT) on death. Assets owned at the time of death are uplifted to market value, ‘washing out’ any gains generated during one’s lifetime. The executors or personal representatives (PRs), and ultimately the beneficiaries, inherit the asset at the market value ondeath (probate value), meaning only future growth is taxable.â¯This can lead to some interesting opportunities for so-called ‘deathbed’ tax planning.
For example, a married couple own assets jointly,
