houses and tax cutting

otv

ok, my mother owns her house alone now (father passed away) and this will be her principal residency, she has now inherited another property and we want to decide the best way to sell this property without getting hit for capital gains tax, is there any solution?

I at present do not have any property (i rent), can she offload it to me and i make that my principal property and therefore save on the CGT due to PR relief? is there a limit i have to own / live in the property to qualify?

RayWolfe

When she "offloads" it to you, CGT will be payable .... and it will be based upon the market value.

Pumpkinface_2

If your mother wants to sell it straight away then I can't see there being a lot of gain chargeable to CGT as house prices aren't going up much at the moment. The gain would be the difference between the valuation established for IHT purposes and the sale price.

If a quick sale is the plan, I would be inclined to recommend she does just that and not bother with the transfer to you which over complicates things, has CGT and IHT implications in itself and probably will achieve little to nothing.

otv

cheers for the confirmations of what i thought was the case