gifts/capital gains

carr_2

Hi folks

Need some advice regarding my family home.
My father gave the house to myself and my two brothers about nine years ago. He has remained in the house rent free during this time.

In the future if the house is sold, do we pay any capital gains. The value has increased from £60k-£110k.

thanks

lisyloo

Yes, you will both be subject to capital gains.

If he dies you might also be subject to inheritance tax (I don't believe it's subject to the 7 year rules as the gift was "with reservation" i.e. he still lives there).

If he goes into a nursing home then the local authority may take it back off you to pay for the fees.
You cannot give assets away and then claim state benefits.
There is no time limit on this - I have seen a case going back 18 years where the house was taken from a son to pay for his mothers long term care.

In your posistion I think I would want to get advice.

You could possily avoid CGT by living there for a while but you would genuinely have to live there not just move in for a week.