Transfers to legatees

For capital gains tax purposes, a 鈥榣egatee鈥� is any person who takes an asset under a testamentary disposition, or on total or partial intestacy. The asset may be a specific gift under the Will or it may represent value to which the legatee is entitled. The same basic rule applies whether the 鈥榣egatee鈥� takes the asset absolutely or as trustee for someone else. It includes a person taking a gift by way of donatio mortis causa, which is a gift the deceased made in expectation of death.

The basic rule is that if personal representatives (PRs) transfer an asset to a legatee under the terms of the Will or intestacy, no chargeable gain (or loss) accrues to the PRs.