Capital gains tax question

CGTquestions

Hi,

Please could someone help?

My question is this....

If one of my relatives or family friends gave me some money to buy a house to help me get "on the ladder" so to speak, would I be liable for CGT?

It will be my only home and I wont be renting it out.

Thanks

noh

The answer is no.

pjcox2005

Quick answer is no.

On the gift itself, the person receiving the money is subject to no tax (i.e. no income tax or capital gains). A slight complication arises for the person gifting the money in that they could be charged inheritance tax on it, but that would only be if they don't survive for another 7 years after giving the gift.

In terms of your house, should you ever come to sell then no capital gains tax would be due as you would get principal private residence relief. i.e. for people owning one home, and living in it themselves then no capital gains tax ever arises.

CGTquestions

Many thanks!