CG T OR IHT

The house is sister A principle private residence for the last 4 years with no mortgage. She is giving her house to sister B and moving out. The house will then be sister B PPR.
Is it just a PET for IHT and no CGT as PPR applies..
  • Assuming sister A has occupied as main residence throughout ownership (and meets all the other criteria to claim the relief eg no other residence, grounds not large), PPR relief should apply so no CGT due.  I would advise sister A to disclose the disposal to HMRC and make the formal claim for the relief.
  • You might also want to get a letter from an estate agent giving you a current approximate valuation, as it's a connected person transfer deemed to be at open market value.  If Sister A happens to die within seven years and the estate is above the nil rate band, you'll need the valuation for probate purposes and the IHT return.