Capital Gains Tax on House Sale

miket_2

My mother transferred her house into the names of myself and my brother and sister about 9 years ago. She is now in residential care funded by herself. We would like to sell the house and use the proceeds to help pay for her residential care. How can we do this without paying capital gains tax or at least minimising the burden?

Ian_W

You really need to see an accountant as CGT is complex but there are quite a few reliefs that will minimise it for you.
For example, taper relief will give you 30% off [+an extra 5% "bonus year" if you owned prior to early 1998] and indexation a bit more for the period you owned up to 97. Each of you has an £8800 personal CGT allowance which can also offset CGT provided you haven't used to sell any other assets.
You really need a valuation from when the house was transfered to you and the gain will be the increase to the selling price less available reliefs.
HTH.

silvercar

I would have thought the main reason your mother transferred the house to you 9 years ago was to prevent it having to be sold to fund residential care. People tend to do this so that it falls out of the estate value for inheritence tax purposes and means that your mother's care needs are funded by the state rather than her assets being sold.

I would suggest reading up on Age Concern's website also CAB. It may be worth seeing an accountant.

TEDDYRUKSPIN

Accountant or a financial advisor can actually tell you. You have not told us how much the property will sell for. Each individual has £8800 for tax relief. Also since you've had the property for more than 9 years, it will fall into the gift category.

PoorDave

Do you own another house(s)? Have you lived in the house?

Could be you're not liable for any CGT.