Advice on Owning One and a Half Properties and Capital Gains

ClareVirginia

Can anyone give me advice? I currently joint own a property with my partner which is my main residence. My father would like to put his property (owned outright) in my name, but he will continue to live there. My question is about capital gains tax;

• If i move house with my partner will I have to pay capital gains tax because I have this other house in my name
  
• Will my partner be liable for anything (we are not married)
  
• Will I have to pay capital gains tax if my sell my father's house (say he wants to move somewhere else).

Any advice appreciated!!!

TrickyDicky101

I am not an expert but:

1. No you will only pay CGT on disposal on the second residence as your primary residence qualifies for Private Residence Relief:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4020890

2. No

3. Potentially yes - depending on the sale proceeds. I would be VERY wary of this as the cost of the residence to you as a gifted asset will be nil so potentially you could be paying lots of CGT if it sells for >£15k.

Can I ask why your father wants to transfer title to you? Is it to avoid selling his place in the event of future nursing home costs or to avoid IHT? If either of these apply there are rules to prevent you benefiting from this approach.