Q. I am a widow and own a house which is mortgage-free, worth about £350,000. I also own a rental property, mortgage-free, that I bought in 2013 for £108,000 and it is now worth about £185,000. In my will I would like to leave this rental property to my partner. He doesn’t live with me but owns his own house worth about £300,000 and his pension income is about £25,000 a year.
If I die tomorrow I am concerned about what capital gains tax might be payable by either my estate, or my partner. I have urged him to keep the property, and not sell, because it gives good rental income. He is not likely to make it his main residence.
Connie
Kate Aitchison replies
There are two taxes at play when someone dies: inheritance tax (IHT) and capital gains tax (CGT).
