Signing over house from elderly relation

getmore4less

funkey_monkey wrote: »

Okay, I've done some more reading on this before i speak to a solicitor.

My understanding is, and correct me if this is incorrect:

1. Property was gifted to me with a reservation. Therefore she can live in it rent free all her days.
2. Therefore there is no income tax to pay as no rent will be forthcoming.
3. Inheritance tax may be null if the total value of her estate is less than the current nil rate threshold - £325,000
4. She has signed the property over to me whilst in good health and has no illnesses or reason to believe she will require care. However the deprivation of assets requires further analysis.
5. CGT applies only if I decide to sell the property and the gains is calculated from the time of death until selling date.
6. If I decide to rent it out after thier death, I am liable to income taxes.

That may not be right, if gifted I though the CGT clock starts ticking.

Patr100

5. CGT applies only if I decide to sell the property and the gains is calculated from the time of death until selling date.

Incorrect.
CGT gains on a later sale , wil apply to any increase in value of the asset (ie house) (minus your allowance)
from the time you acquire it..

funkey_monkey

Okay - I was wrong. It is from sign over to sell date. However, am I correct in my assumption that it only affects me if I do go to sell it?

Also, if I decide to live in the property with her, this will change and CGT will no longer apply?