inheritance tax or capital gains do i have to pay

pike25 · 6 June 2007 at 8:15PM

Hi i was left sum money 9 years ago and my sister made me buy a house so i did she put the house in her name just to protect me iv been to the bank and there is no record of me payn for the house as they only keep records for 6 years im wanting to sell the house to move to a new house but iv been told i will be made to pay inheritance tax or capital gains is it true and how much will i have to pay on the house my sister ownes her own house so on paper she ownes 2 houses is this true will i have to pay this tax on my house it is worth 75,000 can you give me any advice please thanks. is there a way round it thanks ,

kennyboy66_2 · 6 June 2007 at 8:48PM

Probably good advice buying a house, but why was it put in her name ?
Who told you that you would be liable to inheritance tax / Cap. gains tax ?
Do you fully trust your sister?

1) No inheritance tax due.

2) It is your sister who will be selling the house & she may be liable to pay capital gains tax. To calculate the gain you will need to know how much paid for the house originally, the sale value, whether she lived in the house at first, and the number of years it has been held.

If you detail these someone should be able to give you a rough idea how much tax may be due.

You could then take steps to reduce any potential tax burden. For example she could transfer 1/2 the property to you during this tax year, and the rest next tax year (2008/9) - thus reducing the gain in each year and utilisising 2 years allowance.

I would get all the information together and see a financial adivsior.

Cook_County · 6 June 2007 at 8:57PM

For CGT purposes it is beneficial ownership that matters. I suggest you ask the solicitor who will be handling the sale for you for advice.

pike25 · 6 June 2007 at 10:35PM

Hi thanks iv askt the solicator she not suer ;;;;;;;;;;;;;;;;shes had the house 9 years paid 10,000 its worth today 75,000 and shes never lived in the house could she not give me the house as a present or my be sell it to me for say 100punnds or does it all notwork like that cos im wanting to sell the house soon and move thanks.

inheritance tax or capital gains do i have to pay

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free