Something that many people have not realised is that the so called exemption on the family home for Labour’s Capital Gains Tax is temporary. Almost all family homes will be taxed on their capital gain, when you die, if not placed on the market immediately.
Most people now die in their late 70s or 80s. Their kids will tend to be in their 40s or 50s and hence have homes of their own. So when you die, it is very unlikely a child will move into the home. They already have one. Plus few people want to live in the home their deceased parents lived in. So the home gets sold. And guess what? Labour will tax any capital gain on that sale.
It’s almost a de facto death duty – you get taxed for dying!
UPDATE: You can avoid the death duty if you decide to sell the home within 30 days of your parents dying. Charming. At a time you are mourning, you will be forced into rushing the home onto the market to avoid the death duty.Tags: capital gains tax