What is the CGT uplift on death?
Answered 17 March 2026
Based on the retrieved sources, I have comprehensive information to answer this question fully.
CGT Uplift on Death
What the law says
The CGT uplift on death is governed by TCGA 1992, s.62. The key rules are:
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No deemed disposal on death: The assets of a deceased person "shall not be deemed to be disposed of by him on his death (whether or not they were the subject of a testamentary disposition)."
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Uplift to market value: The assets "shall be deemed to be acquired on his death by the personal representatives or other person on whom they devolve for a consideration equal to their market value at the date of the death."
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Transfer to legatees: On a person acquiring any asset as a legatee:
- No chargeable gain accrues to the personal representatives; and
- The legatee is treated as if the personal representatives' acquisition of the asset had been their own acquisition of it (i.e., at market value at the date of death).
- Losses in the year of death: Allowable losses in the year of death that cannot be set against gains in that year may be carried back against gains of the 3 preceding tax years (later years first).
HMRC guidance / practice
HMRC confirms the following practical consequences of the uplift:
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Death is not a CGT event: "It has been a basic principle of Capital Gains Tax since 1971 that when someone dies there is no deemed disposal on death and therefore death is not an occasion of charge to CGT."
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Market value as base cost: The market value at the date of death becomes the acquisition cost for CGT computations on any subsequent disposal by the executors or legatees.
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Legatees' acquisition: "The legatees are treated as having acquired these assets at the time of the death and at the market value at the date of death."
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IHT value adopted for CGT: Where a value has been ascertained for IHT purposes on death, that value automatically applies for CGT purposes as the acquisition value (under TCGA 1992, s.274), so there is no need to separately agree a CGT value.
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Trusts: The death uplift also applies in trust contexts (e.g. under TCGA 1992, s.72 and s.73 for interest in possession trusts), though the availability of the uplift depends on the type of trust and the nature of the interest.
In summary: The CGT uplift on death means that all capital gains accrued during the deceased's lifetime are permanently wiped out — there is no CGT charge on death, and the inheritor's base cost is reset to the market value at the date of death.
Citation sources
e tenant, under S.71(1) TCGA, the trustees are deemed to have disposed of all the property to which beneficiaries are now absolutely entitled - so the total holding of the trustees needs to be valued. For example a person is life tenant of a trust fund which comprises 60 shares in an unquoted company. On his death, the shares go absolutely to three beneficiaries, A, B and C. If you are asked to consider the acquisition value of A’s 20 shares, you should value 60 shares and attribute one third of
Part III Individuals, partnerships, trusts and collective investment schemes etc Chapter I Miscellaneous provisions Death: general provisions. 62 1 For the purposes of this Act the assets of which a deceased person was competent to dispose— a shall be deemed to be acquired on his death by the personal representatives or other person on whom they devolve for a consideration equal to their market value at the date of the death, but b shall not be deemed to be disposed of by him on his death (wheth
These are all cases where a person with an actual IIP, or a deemed IIP for IHT, dies. Cases where property ceases to be settled for IHT purposes. Type of transferor trust for IHT Chargeable transfer for IHT? Disposal for CGT? Can Holdover Relief be claimed? IPDI, Pre 200306 IIP, TSI or Disabled No charge TCGA92/73 applies S165 Trust with Actual IIP: with settled IHTA84/S18 death uplift; liability possible property passing to spouse or civil exemption only if TCGA92/S74 - partner of the previous
TCGA92/S62 It has been a basic principle of Capital Gains Tax since 1971 that when someone dies there is no deemed disposal on death and therefore death is not an occasion of charge to CGT; the executors are deemed to acquire the property at the market value at the date of death. This value is therefore the cost for the CGT computations on any disposal by the executors; if assets are transferred to legatees, including trustees of a new trust or an existing one there is no charge to CGT on the ex
2B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 In relation to property forming part of the estate of a deceased person the personal representatives shall for the purposes of this Act be treated as being a single and continuing body of persons (distinct from the persons who may from time to time be the personal representatives), and that body shall be treated as UK resident if the deceased was UK resident or a long-term UK resident within the meaning of IHTA 1984 at the date
On Harry’s death in January 2008, his share of the matrimonial home is left to his son Edward, with the residue passing to his wife, Fern. The value returned for the entirety is £300,000, so the half share chargeable on the first death is £150,000. The property is sold in 2009 for £350,000 and Edward’s share is liable to CGT. As the value for his share was not ascertained for IHT purposes on the first death, it is necessary to agree the acquisition value to establish the chargeable gain. The val
These are all cases where a person with an actual IIP, or a deemed IIP for IHT dies. Cases where property remains settled for IHT purposes within same settlement. Type of trust for IHT immediately before death Chargeable transfer for IHT? Disposal for CGT? Can Holdover Relief be claimed? Pre 22/03/06 IIP Trust: with new IIP No TCGA92/72 applies S165 for spouse or civil partner of the IHTA84/S18 death uplift; liability possible previous income beneficiary which is exemption only if TCGA92/S74 - a