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Second home for children
RosWright
Posts: 178 Forumite
My mother bought a second home in 1995 that I now live in
She's 80 and scared of inheritance tax. She wants to transfer the ownership to me. Should we be seeing a solicitor or taxation expert for advice?
I think there's a potential headache on the horizon to do with Indexation relief, taper relief and capital gains tax. I'm assuming we will have to have the house valued as well to see the current value as well.
Any advice welcome
She's 80 and scared of inheritance tax. She wants to transfer the ownership to me. Should we be seeing a solicitor or taxation expert for advice?
I think there's a potential headache on the horizon to do with Indexation relief, taper relief and capital gains tax. I'm assuming we will have to have the house valued as well to see the current value as well.
Any advice welcome
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Comments
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Has she actually got enough to worry about? I know my parents' combined house/savings/everything doesn't come near to inheritance tax.0
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Indexation relief and taper relief have gone as far as capital gains tax is concerned.
Time to get the calculator out - capital gains tax now or inheritance tax later?
Capital gains tax only occurs if the property is transferred. If it remains your mothers then there would be no CGT to pay, though it would be included in her estate for inheritance tax purposes.
Tax accountant is your best bet, though no harm in doing the calculations first. Remember also that tax laws can change in the future.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
is it only owned by your mother?
is your father still alive? if not when did he die, as the IHT threshold of £325,000 could be 625,000 if his allowance is transfered to your mother
as stated there are some basic calucaltions which will show whats best now or later, how much is mothers total estate likely to be, it is always wise to do proper IHT planning using a tax accountant if it is above the IHT limit0 -
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what was the buying price
what is it's current value (approximately)
what is her total estate worth (including the property)
is her husband alive... if not did he leave everything to her0 -
blackshirtuk wrote: »but only if she dies within 7 years of giving to you.
Not if she keeps it in her [the mother's name] name, which was the first half of my sentence.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
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Original buying price was 44,000. Zoopla now has the house at £113,000
Mother and father both alive! But mum 80, dad 82 and dad not in the best of health0 -
Reading through this again, if she gifted, we'd be liable to CGT now, and if something happened to her, then CGT on inheritance tax for the same gift???0
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