House as a gift.

dopester

00ec25 wrote: »

the implications are all for her

as said she will have an IHT liability for the next 7 years - her estate will have to pay it (lets hope she still has some money left), you will not have to pay it

If she does actually gift it to you after she has purchased I think she may have to pay a second round of stamp duty as they do not like items given awy for nil cost to the receipent. Again you will not have to pay anything

It's all a bit foggy now but a few years ago I read through some of my sister's law books whilst testing her in preparation of her law exams.

I got the impression the Inland Revenue (IHT Capital Tax Division or whatever it's called) could seek to recover the IHT owing from people those the money/assets had been gifted to (upto 7 years after gift first made), if the person who died doesn't have sufficient funds/assets left over to settle the IHT liability. Assuming there is any IHT liability (past the threshold where it kicks in).

puddy

isnt there some rule about income tax though if someone gives you money or something equivilant of over 9k a year?

poppysarah

I'd suggest taking a free half hour of legal advice for yourself and suggest to your friend they do the same.

Buying houses for people is not a normal thing to be doing and so you want to make sure it's done properly and as legally as possible.

The idea of building work being done on the property too makes this rather strange.

Milliewilly

jenner wrote: »

isnt there some rule about income tax though if someone gives you money or something equivilant of over 9k a year?

Don't think so providing its a gift and the giver outlives their gift by 7 years.

dar3n_2

Thanks guys, some interesting comments at last instead of questioning the post.

My friend is seeing her Solicitor today so hopefully she will be made aware of all these things... I dont think there will be any issue of her not being in a position to pay any IHT if ever it does crop up.

Thanks again.

mlz1413

I think getting yourself some advise is the best thing, I'd pay an accountant for some tax advice as that is your main worry.

If your going to live in it then it shouldn't be a problem as it will be your main residence, but if you ever made it a second home then Capital Gains maybe payable when sold.

SailorSam

Has she got a sister ?
I'll pm you my phone number.

Eric_Pisch

babyblooz wrote: »

Why would someone want to just give someone a house?

because you can breath through your ears

dar3n_2

Has she got a sister ?
.

PMSL :rotfl:

TrickyDicky

jenner wrote: »

isnt there some rule about income tax though if someone gives you money or something equivilant of over 9k a year?

You can give £3k cash per year complety IHT free (ie. if the person dies within 7 years, there no IHT to pay). Anything above this amount is subject to IHT within 7 years of gifting.