Capiyal Gains advice needed please

Tessmaz

Help needed!
This is a long story cut short...My dad has a property in another city to me he helped me out 7 years ago and brought a property for me (as i couldn’t get a mortgage) by remortgaging his property for a further 85k, we don’t think he will get an extension on his mortgage this year as he has reached the age of 60 was self employed but not worked for almost a year due to health reasons. He has 34k left of his own mortgage to pay, which his endowment is in line to pay this off, so he will still be left with the 85k..I am not sure if i will get a mortgage still with how tough it is now but could still try, he is considering selling his property paying off the full 85k move in with me and i pay him an income monthly so he can afford to live! My main question is will he have to pay capital gains tax on this and would he avoid this if i mortgaged the property..in other words what is the best option not to pay CGT if this is possible??? Please help!

getmore4less

Its not clear, can you say who owns the houses and which have mortgages.

Engeroosi

his dad owns both, lives in one and the OP lives in the other and im guessing pays his dad rent. Now the OP wants to effectively take out a mortgage on the house so he can give his dad 85k, so he doesnt have to sell his house to pay off the mortgage he has.

Sounds like the OP doesnt want his dad moving in. he he

Mojisola

Tessmaz wrote: »

Help needed!
This is a long story cut short...My dad has a property in another city to me he helped me out 7 years ago and brought a property for me (as i couldn’t get a mortgage) by remortgaging his property for a further 85k, we don’t think he will get an extension on his mortgage this year as he has reached the age of 60 was self employed but not worked for almost a year due to health reasons. He has 34k left of his own mortgage to pay, which his endowment is in line to pay this off, so he will still be left with the 85k..I am not sure if i will get a mortgage still with how tough it is now but could still try, he is considering selling his property paying off the full 85k move in with me and i pay him an income monthly so he can afford to live! My main question is will he have to pay capital gains tax on this and would he avoid this if i mortgaged the property..in other words what is the best option not to pay CGT if this is possible??? Please help!

No, you don't have to pay CGT when you sell the house that you have been living in.

getmore4less

his dad owns both

it does not say that, it says

brought a property for me (as i couldn’t get a mortgage) by remortgaging his property for a further 85k

Tessmaz

HAHA...It s a really confusing situation...which I have not clearly stated! I dont mind dad moving in i just dont want him to have to pay more! I have paid rent to cover the extra 85k for the remortgage.

Dad will be selling the main property he has lived in this will pay off all mortgages and will move in with me! Unsure if the house i live in will ever sell due to the property having previously subsidence (which is all sorted now)...my question is will there be CGT due if he was to move in with me if he was to sell his property and have no mortgage on the property he owns which i live in?

Mojisola

Tessmaz wrote: »

my question is will there be CGT due if he was to move in with me if he was to sell his property and have no mortgage on the property he owns which i live in?

You don't pay GCT if you sell the property that has been your main residence so as long as he stays there until he puts it up for sale, he won't have to pay GCT.