Question:

My wife and I have some shares, purchased a few years ago, that are in our own names, not jointly held. If I die first, I assume that the shares in my name which I have willed to her, will pass to her capital gains tax free (unless she sells them)...can you please advise whether or not my assumption is correct?
thanks

 

Answer:

Death does not trigger capital gains tax – it merely transfers the liability to the beneficiary. Therefore no capital gains tax will be payable until she disposes of them. This is why it is important to involve the accountant when an estate is being wound up.