CG14310 - Computation: interaction with other taxes: inheritance tax

Death is not a chargeable occasion for Capital Gains Tax (鈥淐GT鈥�) purposes. However, there may be occasions where a lifetime gift does give rise to a CGT charge. The existence of a possible charge听to Inheritance Tax (鈥淚HT鈥�) does not usually affect the computation of any chargeable gain or allowable loss for CGT purposes. Sometimes, though, a decision taken in connection with one tax can have an impact on the other, for example听听

  • IHT heritage asset exemption, see 听and CG73300P.听听

  • Gift hold-over relief, see 听and CG67030P.听听

Also, some common terms have different meanings for each of the two taxes. Where the definition is satisfied for one tax, you need to be aware that this does not necessarily mean that it will be satisfied for the other.听听

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