Tax tune

My client’s mother purchased a violin in the 1960s for £1 500 which she played professionally so it was not acquired with a view to eventually selling. Today’s value would mean a gain of about £150 000.

The mother is now in her late seventies and has had dementia for four years. Four years’ ago the mother gifted the violin to her daughter (who is also a professional musician) as she knew her health was failing. This was done without any formality and was a safety precaution in case something happened to the instrument.

The mother has been resident with the daughter for a year and it has been decided to sell the violin. The mother wishes the money to go to paying off the daughter’s mortgage and towards the costs of just living in her daughter’s home. No inheritance issues are anticipated as her estate is less than...