Readers' forum: Inheritance implications

I act on behalf of an individual who owns about a dozen buy-to-let properties which he bought over a period of some years during in the 1990s. The houses are all let to students and their values have increased significantly. My estimate is that these now have total accumulated capital gains of more than £2m.

My client is approaching retirement age and is keen to transfer the properties to his adult children so that he can save inheritance tax. Although this may make sense from that point of view I have had to point out the problems with respect to the potential capital gains tax and stamp duty liabilities.

On hearing this the client was not impressed and asked: ‘How did the Duke of Westminster manage to leave his properties tax free to his successor?’

I must admit that this question has occurred to me in the past and I wonder whether...