Buying house from parents to aid quick sale

Pathfindercool

I have not been able to find a similar thread so here goes. My father in law is emigrating to Brazil and needs to sell his house quickly to buy a property in Brazil. To speed up him getting the funds we are considering buying his current house from him and then selling it on the open market in due course.
We would not pay the full market value to allow for our costs and to allow for some money that he already owes us. If we then sell the house at a profit we will pass most of it on to him.
Current market value is about £115,000.
We can afford to pay £95,000 (from an inheritance).
He owes us about £5000, allowing for our solicitor's fees and estate agents. We might sell as low as £110,000 for a quick sale.

The main questions are:
How can we avoid paying Capital Gains Tax on any "Profit" we make, as we will be passing most onto him, and it is also to recoup our expenses?
Can we avoid paying the Community Charge during this process?
Are there any other tax pitfalls, I may not have anticipated?
Thanks

david29dpo

1. You only pay CGT on profit over £9500.00, twice that if in joint names with you wife. 2. Maybe, if the house is unfurnished, depends on the council. 3. Non that i can think of.

missile

I would think long and hard about this. You could be left with a house which you cannot sell. Your $10,000 "profit" could easily be swallowed up in costs and fees.

Lotus-eater

missile wrote: »

I would think long and hard about this. You could be left with a house which you cannot sell. Your $10,000 "profit" could easily be swallowed up in costs and fees.

I agree, if he could sell it at this price he would. You can do it, but if something goes wrong, like you can't sell it, you might end up losing money, are you prepared for this?