From: "Andy" 
Newsgroups: uk.finance
Subject: CGT or IHT or both
Date: 4 Oct 2006 03:14:50 -0700
   posting-account=wveO0g0AAABm1fb4y8awKRaLxSSWN93z

My situation is that 10 years ago a property was transferred to my
name. The donor continued to live there and paid me no rent. This
property then becomes a gift with reservation and so remains part of
their estate for IHT. The donor has now died and the property has been
sold. The total value of the estate was below the IHT threshold and so
I do not expect to pay IHT on it.

However, how is the property treated for my capital gains? If CGT is
payable then does this mean that potentially (if the estate had been
above the IHT threshold) we would have to pay both IHT and CGT?