Capital Gains Tax
Discussion
feeling bad about the slightly flippant response. If your Mum sells the house she won't be liable for tax. Your main concern is about how long she lives after she's given you the cash. I think it's 7 years aftr you get the cash that you're subject to inheritance tax. Anyhow. The flippancy still stands. Cash is king.
Take some prof advice.
Take some prof advice.
As above, if this is your mother's main home then when selling it no cap gains is due.
She then gifts you the money so again no tax is due on a gift.
If however she dies within 7 years then this gift (or part of it) would be included in her estate and then you'd have inheritance tax implications (if her total estate is above the inheritance tax threshold that is).
She then gifts you the money so again no tax is due on a gift.
If however she dies within 7 years then this gift (or part of it) would be included in her estate and then you'd have inheritance tax implications (if her total estate is above the inheritance tax threshold that is).
The house itself is well below the Inheritance Tax threshold - so, assuming she has no other major assets to pass on when she passes on, there should be no Inheritance Tax arising either.
A person's main residence is completely free from Capital Gains Tax. If a person owns more than one property, there is even the option to chose which of the properties is the Main Residence (subject to certain criteria being met). The UK tax system is surprisingly lenient and flexible when it comes to the taxation of property.
Ask Hazel Blears
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A person's main residence is completely free from Capital Gains Tax. If a person owns more than one property, there is even the option to chose which of the properties is the Main Residence (subject to certain criteria being met). The UK tax system is surprisingly lenient and flexible when it comes to the taxation of property.
Ask Hazel Blears
.Symptomless Coma said:
What happens if you only own 1 property but don't live there - are you still subjected to capital gains?
Possibly. If you have NEVER lived there then it can never have been your main residence. However, if you have managed to live in it at some time - or even just intended to live in it but found (for whatever reasons) that you were unable to, then it can attract the Capital Gains Tax exemptions - on a time apportioned basis if necessary.Edited by Eric Mc on Thursday 13th August 10:00
esselte said:
What's a fold? Sorry for my ignorance...
just passing by and saw this thread and questionCGT doesn't apply to willed estates of less than (approx.) £350k! Just awaiting sale of a property that's part of an estate of (a very carefully managed) £349,999.99 value or slightly less...
and a 'fold' is an old folks home or at least it is in parts of Ireland...
hth
XXVIII said:
esselte said:
What's a fold? Sorry for my ignorance...
just passing by and saw this thread and questionCGT doesn't apply to willed estates of less than (approx.) £350k! Just awaiting sale of a property that's part of an estate of (a very carefully managed) £349,999.99 value or slightly less...
and a 'fold' is an old folks home or at least it is in parts of Ireland...
hth
yep, sorry I meant IHT not CGT...
My sister is the one holding the purse strings here - and yep, that explains why she's not been that concerned by the fall in the notional value of the property in the last year or so...
It would be good if we could sell the parents house as neither of us want to live in there and we couldn't risk letting it out to some hooligans. Whilst there's no mortgage remaining or much by way of running costs to pay, something approaching an amount more than effectively squat-all would be good to get as our folks intended...
... and I was just passing, but this will teach me to stick to commenting about what I know about which is clearly not tax matters!
My sister is the one holding the purse strings here - and yep, that explains why she's not been that concerned by the fall in the notional value of the property in the last year or so...
It would be good if we could sell the parents house as neither of us want to live in there and we couldn't risk letting it out to some hooligans. Whilst there's no mortgage remaining or much by way of running costs to pay, something approaching an amount more than effectively squat-all would be good to get as our folks intended...
... and I was just passing, but this will teach me to stick to commenting about what I know about which is clearly not tax matters!
XXVIII said:
esselte said:
What's a fold? Sorry for my ignorance...
just passing by and saw this thread and questionCGT doesn't apply to willed estates of less than (approx.) £350k! Just awaiting sale of a property that's part of an estate of (a very carefully managed) £349,999.99 value or slightly less...
and a 'fold' is an old folks home or at least it is in parts of Ireland...
hth
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