Since 1927 the leading authority on tax law, practice and administration

Had an impression

© Copyright LexisNexis 2024. All rights reserved.

13 August 2013

Issue: 4415 / Categories: Forum & Feedback , Capital Gains

A father acquired an impressionist painting from his mother on her death about 12 years ago. The father’s own son will soon have his 50th birthday and the father wishes to gift the painting to him as a present

My client’s mother died about 12 years ago and in her will she left her eldest son (my client) an original painting by a German impressionist. I do not have a current valuation of this painting but it is quite considerable probably in the region of £20 000.

My client’s son is now about to reach his 50th birthday and because the painting is now something of a family heirloom my client in turn proposes to gift this painting to his son outright without any conditions and irrevocably.

I am now wondering what the capital gains tax implications of such a gift might be and whether this needs to be declared to HMRC.

Can readers advise me in this regard?

Query 18 239 – Hugo

Reply from Nicola Keene

The legislation treats a gift of an asset as a deemed disposal at...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Had an impression

© Copyright LexisNexis 2024. All rights reserved.

13 August 2013

A father acquired an impressionist painting from his mother on her death about 12 years ago. The father’s own son will soon have his 50th birthday and the father wishes to gift the painting to him as a present

My client’s mother died about 12 years ago and in her will she left her eldest son (my client) an original painting by a German impressionist. I do not have a current valuation of this painting but it is quite considerable probably in the region of £20 000.

My client’s son is now about to reach his 50th birthday and because the painting is now something of a family heirloom my client in turn proposes to gift this painting to his son outright without any conditions and irrevocably.

I am now wondering what the capital gains tax implications of such a gift might be and whether this needs to be declared to HMRC.

Can readers advise me in this regard?

Query 18 239 – Hugo

Reply from Nicola Keene

The legislation treats a gift of an asset as a deemed disposal at...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4415

Categories: Forum & Feedback [1] , Capital Gains [2]

SourceURL:

Links:

READERS' FORUM premium icon

Readers forum: Claiming pre-registration input tax Practice tip: 19 December 2024 New Queries: 19 December 2024 Readers’ forum: Should I advise my client to declare income? Readers’ forum: Pension scheme set up as discretionary trust?

FIVE WAYS TO MAKE ACCOUNTS PRODUCTION AND TAX EASIER.
Download the exclusive Xero
free report here.

New queries

Please email any questions you might have
to: taxation@lexisnexis.co.uk.

NEWS

Automated tracking system for taxpayers could save £36m a year, study shows Welsh income tax rates are unchanged Business expenditure on R&D rises in 2023 HMRC targets landlords who may have undeclared rents Lump sums cannot be returned to pension scheme

Third slide

Deadline dates for January 2025

CASES

No extenuating circumstances to extend deadline Delay in issuing penalties was no excuse for late return Sales of occupation income avoidance rules apply Whole of settlement was not subject to tax Payments were taxable as earnings

MOST POPULAR

Readers forum: Claiming pre-registration input tax No extenuating circumstances to extend deadline This week's opinion: 19 December 2024 Automated tracking system for taxpayers could save £36m a year, study shows Welsh income tax rates are unchanged

back to top icon