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How can me Mum Help me buy a hoose?
futurecut
Posts: 23 Forumite
Deap Breath!
I'm in Glasgow. Mother's come into a good wedge from a shares buyout and is going to get a large bill for CGT. She's offloading as much as possible and is thinking of trying to help me buy a place.
What options might she have to help me out in terms of buying a property or renting from her which would be tax efficient?
I live with me girl'f if that complicates matters and she'a already renting out one house privately from an inheritance though perhaps not quite legitimately
Any ideas appreciated.
I'm in Glasgow. Mother's come into a good wedge from a shares buyout and is going to get a large bill for CGT. She's offloading as much as possible and is thinking of trying to help me buy a place.
What options might she have to help me out in terms of buying a property or renting from her which would be tax efficient?
I live with me girl'f if that complicates matters and she'a already renting out one house privately from an inheritance though perhaps not quite legitimately
Any ideas appreciated.
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futurecut wrote:Deap Breath!
I'm in Glasgow. Mother's come into a good wedge from a shares buyout and is going to get a large bill for CGT. She's offloading as much as possible and is thinking of trying to help me buy a place.
What options might she have to help me out in terms of buying a property or renting from her which would be tax efficient?
Not sure what the plan is here, but if the shares have been sold, she already has the CGT liability. Giving money away now will not reduce CGT. In fact, giving the shares away does not escape CGT either.
Is your question re tax efficient to do with CGT?
If you rent a property from your mother, she would have to declare the rent she gets as income - but she could offset the costs of maintaining the property against that income.
If she gives you money to buy your own place then this won't escape any CGT she has on the shares. But it might be an exempt transfer for IHT (if she has that potential problem), if she lives for a further 7 years. You would not be taxed on the value of the gift.
Not clear what you're hoping to achieve here - what do you mean by "tax efficient"?I live with me girl'f if that complicates matters and she'a already renting out one house privately from an inheritance though perhaps not quite legitimately
Any ideas appreciated.
Do you mean that she owns a house (she inherited) and lets it out to other people? What do you mean by "not quite legitimately"? If she is not declaring the rental income to the taxman, she's in for a big shock when they catch up with her.
You won't find anyone here who encourages, condones or supports deliberate tax evasion - so get it sorted!Warning ..... I'm a peri-menopausal axe-wielding maniac
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