Question Tag: Death of Asset Owner

Where an individual realises an asset on the death of another person by way of transfer of ownership of the asset, the following taxation rules apply:
• The individual is treated as deriving an amount in respect of the realisation equal to the market value of the asset at the date of death.
• The person who acquires the asset is treated as incurring an expenditure of an amount equal to the market value of the asset at the date of transfer.

(5 marks)