I can imagine big problems with cap.gain after death on a deceased person's own home, dating back from purchase date.
Family members would be anxious to get ageing parent to move home and release the cap.gain (free of tax) and buy back in to another residence. That would be wise financial management. It would not be a wise financial policy. Any parent who has a history of moving homes throughout the lives would end up with much less cap.gain tax liability on their home once it becomes part of their estate. It would be all due to pot luck, rather than on the value of the overall estate which a death duty is usually based on. Also a financial policy which gives a capital tax-free entitlement to one person who owns a house, then dies, and that tax-free entitlement during THOSE SAME YEARS now converts to a taxable asset is simply confusing and misleading. So a tax-free asset suddenly changes its status and is backdated! Get moving mum (who is getting old) and sell your long-held house and buy another I hear their children cry. It will otherwise mean we lose much more of our inheritance if you do not do so.
Creative thinking on your part but utterly deplorable potential outcomes.
