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    • MrEnigma
    • By MrEnigma 20th Mar 17, 7:16 PM
    • 24Posts
    • 1Thanks
    MrEnigma
    Gifted House
    • #1
    • 20th Mar 17, 7:16 PM
    Gifted House 20th Mar 17 at 7:16 PM
    Hi group.

    Last June my mother gifted me her house which was at the time worth £285000.
    I was renting a property at the time, so thought it best to move in with her.

    Question is: Do I have to charge her rent? In order to comply with any tax rules.
Page 1
    • Pixie5740
    • By Pixie5740 20th Mar 17, 7:22 PM
    • 10,633 Posts
    • 14,607 Thanks
    Pixie5740
    • #2
    • 20th Mar 17, 7:22 PM
    • #2
    • 20th Mar 17, 7:22 PM
    Your mum has gifted you the property that she currently lives in? What was she trying to achieve/avoid by doing this?

    If she continues living there free of charge then it will have been a Gift With Condition meaning the property will not be exempt from Inheritance Tax. However, depending on the size of her estate this might not be an issue.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Pixie5740
    • By Pixie5740 20th Mar 17, 7:25 PM
    • 10,633 Posts
    • 14,607 Thanks
    Pixie5740
    • #3
    • 20th Mar 17, 7:25 PM
    • #3
    • 20th Mar 17, 7:25 PM
    Hi group.

    Last June my mother gifted me her house which was at the time worth £285000.
    I was renting a property at the time, so thought it best to move in with her.

    Question is: Do I have to charge her rent? In order to comply with any tax rules.
    Originally posted by MrEnigma
    Deja vu: http://forums.moneysavingexpert.com/showthread.php?t=5434823
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • MrEnigma
    • By MrEnigma 20th Mar 17, 7:27 PM
    • 24 Posts
    • 1 Thanks
    MrEnigma
    • #4
    • 20th Mar 17, 7:27 PM
    • #4
    • 20th Mar 17, 7:27 PM
    She gifted the house, as that was what she wanted in her will. She was concerned that the will might of got challenged.
    • Victor the Gink
    • By Victor the Gink 20th Mar 17, 7:28 PM
    • 153 Posts
    • 287 Thanks
    Victor the Gink
    • #5
    • 20th Mar 17, 7:28 PM
    • #5
    • 20th Mar 17, 7:28 PM
    Why did she do it at all? Does she have significant assets otherwise?

    I will never understand people who make life changing decisions they wouldn't otherwise have made to save a few thousand quid of tax.
    • zagfles
    • By zagfles 20th Mar 17, 7:29 PM
    • 11,986 Posts
    • 9,944 Thanks
    zagfles
    • #6
    • 20th Mar 17, 7:29 PM
    • #6
    • 20th Mar 17, 7:29 PM
    Google POAT
    • MrEnigma
    • By MrEnigma 20th Mar 17, 7:33 PM
    • 24 Posts
    • 1 Thanks
    MrEnigma
    • #7
    • 20th Mar 17, 7:33 PM
    • #7
    • 20th Mar 17, 7:33 PM
    Why did she do it at all? Does she have significant assets otherwise?

    I will never understand people who make life changing decisions they wouldn't otherwise have made to save a few thousand quid of tax.
    Originally posted by Victor the Gink
    Total assets just under £325,000
    • Catswhiska
    • By Catswhiska 20th Mar 17, 7:34 PM
    • 16 Posts
    • 10 Thanks
    Catswhiska
    • #8
    • 20th Mar 17, 7:34 PM
    • #8
    • 20th Mar 17, 7:34 PM
    Hope she never needs nursing care. Deprivation of assets
    • Penitent
    • By Penitent 20th Mar 17, 7:36 PM
    • 1,256 Posts
    • 3,711 Thanks
    Penitent
    • #9
    • 20th Mar 17, 7:36 PM
    • #9
    • 20th Mar 17, 7:36 PM
    It looks like your question was answered in your previous thread, so I'm not sure why you're asking again. Do you want to charge her rent?
    • MrEnigma
    • By MrEnigma 20th Mar 17, 7:38 PM
    • 24 Posts
    • 1 Thanks
    MrEnigma
    Hope she never needs nursing care. Deprivation of assets
    Originally posted by Catswhiska
    Yes something to consider.
    Has been suggested that after 3 years, deprivation of assets gets nulled
    • Pixie5740
    • By Pixie5740 20th Mar 17, 7:40 PM
    • 10,633 Posts
    • 14,607 Thanks
    Pixie5740
    Yes something to consider.
    Has been suggested that after 3 years, deprivation of assets gets nulled
    Originally posted by MrEnigma
    Suggested by whom? Not the local authority.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • MrEnigma
    • By MrEnigma 20th Mar 17, 7:40 PM
    • 24 Posts
    • 1 Thanks
    MrEnigma
    It looks like your question was answered in your previous thread, so I'm not sure why you're asking again. Do you want to charge her rent?
    Originally posted by Penitent
    Indeed no, I do want to charge her rent. I was listening to the radio, and it was pointed out that rent would be chargeable at Market rate, and tax would need to be paid on it. This has confused me.
    • MrEnigma
    • By MrEnigma 20th Mar 17, 7:42 PM
    • 24 Posts
    • 1 Thanks
    MrEnigma
    Suggested by whom? Not the local authority.
    Originally posted by Pixie5740
    A solicitor
    • Red-Squirrel
    • By Red-Squirrel 20th Mar 17, 7:42 PM
    • 1,425 Posts
    • 3,576 Thanks
    Red-Squirrel
    She gave you her home, for nothing, and you think she should pay you?
    • MrEnigma
    • By MrEnigma 20th Mar 17, 7:43 PM
    • 24 Posts
    • 1 Thanks
    MrEnigma
    She gave you her home, for nothing, and you think she should pay you?
    Originally posted by Red-Squirrel
    Please read all the posts before posting, thanks.
    • Pixie5740
    • By Pixie5740 20th Mar 17, 7:44 PM
    • 10,633 Posts
    • 14,607 Thanks
    Pixie5740
    She gave you her home, for nothing, and you think she should pay you?
    Originally posted by Red-Squirrel
    The mind boggles.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Pixie5740
    • By Pixie5740 20th Mar 17, 7:45 PM
    • 10,633 Posts
    • 14,607 Thanks
    Pixie5740
    OP, did you and your mother each take independent advice on this before your mother transferred the deeds of her home to you? The questions you are asking now would suggest not. It would also suggest that you didn't read the replies in your previous thread.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Penitent
    • By Penitent 20th Mar 17, 7:46 PM
    • 1,256 Posts
    • 3,711 Thanks
    Penitent
    Indeed no, I do want to charge her rent. I was listening to the radio, and it was pointed out that rent would be chargeable at Market rate, and tax would need to be paid on it. This has confused me.
    Originally posted by MrEnigma
    The advice in the previous thread was that you both take independent, professional advice before doing this in order to avoid IHT/deprivation issues and the issues with the arsey relative. Did you both do this?

    Edit: Pixie beat me too it. Should've refreshed before posting.
    • MrEnigma
    • By MrEnigma 20th Mar 17, 7:46 PM
    • 24 Posts
    • 1 Thanks
    MrEnigma
    ^^^^^ look at post 12
    • MrEnigma
    • By MrEnigma 20th Mar 17, 7:49 PM
    • 24 Posts
    • 1 Thanks
    MrEnigma
    The advice in the previous thread was that you both take independent, professional advice before doing this in order to avoid IHT/deprivation issues and the issues with the arsey relative. Did you both do this?
    Originally posted by Penitent
    That is not the current question, but yes took advise, as the total estate was below £325,000 then no IHT. Also as previously stated was advised after 3 years that deprivation of assets would be nulled.

    If I have incorrect advise, then will have to use another solicitor.

    Back on topic please. Thanks
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