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Transfers to legatees

For capital gains tax purposes, a ‘legatee’ 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 ‘legatee’ 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.