Taxation of Chargeable Gains Act 1992 section 63

Death: application of law in Scotland

Section 63 deals with the capital gains tax consequences when a Scottish proper liferenter dies and another person becomes entitled to the property as fiar.

• This section applies specifically to Scottish property law concepts of proper liferent and fee
• When a proper liferenter dies, the person who becomes entitled to the property as fiar is treated as having acquired the assets at that date
• The acquisition cost is deemed to be the market value of the assets at the date of the liferenter's death
• This provides a tax-free uplift in base cost to market value at death, consistent with the general treatment of assets passing on death