Capital Gain Tax - Urgent Help Required!

Bossyboots

LISA80 wrote: »

I did not have any savings I myself have taken a mortgage to buy the house from mum (90,000 was the max I could take on a mortgage)

All parties involved - mortgage advisors, solistors, banks etc - nobody told me about CGT!

I live in the house as well therefore I assume that if I sell the property at a later date I would not be liable either??

I think the assumption may have been that you were living elsewhere as that is commonly the situation in these transactions.

As you are living in the property you own, it is your principal residence. You might have issues later on if you move out and then want to sell but I don't know enough about the calculations to give you a scenario. Hopefully someone else will.

It is not only CGT that may cause issues in the future. If you or your mum want to marry, would the other be happy with the new partner moving in? If there was then to be a divorce, the other partner would be entitled to a share of the property. This could result in the property needing to be sold. If you were to become bankrupt, your mum could lose her home.

I would hope that by the time there is any question of your mum needing to consider residential care, your purchase will not be seen as an intent by her to deprive herself of an asset as she is still very young.

silvercar

If your mum lived in it as her main residence all the time she owned it and you do the same, neither of you will have a CGT liability.

That is why no-one mentioned it at the time of the transaction.

LISA80

I would like to thank everyone for their help & advice!

Just for background information both myself and my fiancee have lived with my mum in this property for over 10 years therefore we have no issues regarding living together. Should we have decided to move out ourselves mum would have sold the house anyway to downgrade as this house would have been too big for someone on their own as it happenened we all wanted to stay in the house and therefore decided that this would be the most logical solution. We have built in a private agreement that if for any reason my mum no longer wants to live with us then we give her back the 'gifted' amount.

This idea had come from my mum initially as this was also to assist us with getting on the housing market alongside the possible of future 'nannying' should we decide to have children!

Thank you all again - much apprecited!