We have recently made a will leaving our house to our son, who is buying his own house. Will he have to pay capital gains tax on the rise in value of our property when the day comes? I understand that, if he’d bought our house, he would only have to pay capital gains on the difference between the purchase price and the sale price?
Capital gains tax is not payable on death. There may be inheritance tax to pay, depending on the size of your estate, but the first £900,000 is tax free for married couples and civil partners where they leave property to children or grandchildren. The only circumstances in which it would be financially advantageous for your son to buy your house would be where he lived with you and you needed to raise cash. If that’s the case discuss the plan with a solicitor.