CGT & Gifted Homes

Tullius_Cicero

My wife and I are to receive a property each in the near future. Until we were married in August 2008 we had been living independently in these two properties. We are now living together in one of these properties, as our main residents. We understand CGT (Capitol Gains Tax) will be due from those family members giving the properties, but will we incur CGT, and if so how will this be calculated?

Also is it possible for us to pay the CGT for the family members who are to give us the properties?

Is it possible to raise a mortgage on one of these properties to pay for the CGT we will have to pay and/or the givers?

silvercar

Bit confused.

Were you both living in properties that belonged to others who are now gifting the properties to you?

Assuming this is the case, they may have a CGT liability based on the gain in value between when they bought the properties and when they transferred them to you.

If they lived in the properties as their main home the liability is reduced. Also if they let the properties and had previously lived in them, they attract letting relief.

Otherwise its a straightforward calculation of the gain, less a CGT allowance currently £9,600, and taxed at 18%.

Also is it possible for us to pay the CGT for the family members who are to give us the properties?

Perfectly acceptable to give a cash gift to people that they use to pay their CGT bill.

You can also raise a mortgage if you own the property and have an income to justify the mortgage.

Remember for the future that a married couple can have only one prinicpal private residence between them.

CLAPTON

The CGT issues depended upon the history of the houses

I assume the owner of the houses are relatives?

-did the owner every live in the house as their main residence?
-did they charge you rent while you lived there (and did they declare this as a taxable income)