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Father in Law GIVING us money for a deposit.... any implications?
Comments
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(sadly) I've spent most of my life givng money to my children but I don't keep a record and there is no legal obligation to do so.
But I suppose if the executors of some-one's will are not the beneficiaries then maybe a list would be useful.
Also, if the father in law does change his mind in the future there is actually legislation that will allow him to have an equiatbale interest even in the property even if he is not named on the title deeds.
This can be negated with a signed declaration that this is a non repayable gift in favour of love and affection to his daughter and yourself.
Just remember people, their views and money change!0 -
no, there is no cgt liability when the property is sold, unless the FIL is part owner and on the deeds of the house
what are your circumstances that you believe you will be liable fo cgt?
We were gifted £100k from inlaws to buy the house (we have a mortgage for £30k)
Solicitor and financial advisor told us we would be liable for CGT - the house is in mine and my husbands name.
However we are buying their house, so maybe that is why? (although I can't see why it would depend on who's house you are purchasing?) or perhaps it is the amount?NSDs 7/20
Make £10 a day £403.74/£3100 -
Just went through the emails, the CGT will come when we sell the house, because as we are being gifted the £100k, we are effectively only buying the house for 30k (although that is not how any of the paperwork states it, including the mortgage...) when we sell the house (for considerably more than 30k I hope!) we will have to pay CGT on the 'profit'
I don't pretend I understand it to be honest, it all goes right over my headNSDs 7/20
Make £10 a day £403.74/£3100 -
Just went through the emails, the CGT will come when we sell the house, because as we are being gifted the £100k, we are effectively only buying the house for 30k (although that is not how any of the paperwork states it, including the mortgage...) when we sell the house (for considerably more than 30k I hope!) we will have to pay CGT on the 'profit'
I don't pretend I understand it to be honest, it all goes right over my head
Sorry, I cannot believe this is correct.
If the money is gifted to you, it is your money at the point it is used to purchase the property. So the house is being bought for £130K. If you are living in the house as your principal residence, no CGT would be due if you sold it at any level of profit.
If it were simply that your in-laws have reduced the price of the property to £30K you still wouldn't raise CGT implications unless the house wasn't your principal residence at the time it was sold.
Are your in-laws living in the house at the moment or is their principal residence elsewhere and this is a second home or something that they had as, for example, a buy to let property?0 -
We live in forces accommodation, my in laws reside in the house. Is that the reason we will have to pay CGT then? Because we don't and never will live in that house? We don't have a buy to let mortgage, because they are immediate family. It was a very complicated situation buying this ruddy house, and I have a very strong hate/hate relationship with my solicitor
not solicitors in general, just mine. Who seemed to enjoy baffling me with jargon then patronising me when I misunderstood something.
ETA it is and was their primary residence
NSDs 7/20
Make £10 a day £403.74/£3100 -
I hope so as with over £450K in debt on that sig you would have big problems
Isn't it £46k?! I'm never offended by debate & opinions. As a wise man called Voltaire once said, "I disagree with what you say, but will defend until death your right to say it."
Mortgage is my only debt - Original mortgage - January 2008 = £88,400, March 2014 = £47,000 Chipping away slowly! Now saving to move.0 -
We live in forces accommodation, my in laws reside in the house. Is that the reason we will have to pay CGT then? Because we don't and never will live in that house? We don't have a buy to let mortgage, because they are immediate family. It was a very complicated situation buying this ruddy house, and I have a very strong hate/hate relationship with my solicitor not solicitors in general, just mine. Who seemed to enjoy baffling me with jargon then patronising me when I misunderstood something.
ETA it is and was their primary residence
your situation is very different to the OP
if it suits you then post the full details in a separate thread
... and change your solicitor too to some-one who will explain the situation fully0 -
Is them being immediate family relevant?
It is very relevant, as if 40% or more of a property is occupied by family, it takes the BTL mortgage from being unregulated to regulated.
Most BTL lenders don't wish to operate in this market - hence why it can be difficult to obtain a BTL mortgage for family to occupy.
In this circumstance, usually a dependants mortgage is sought.
Hope this helps
Holly0
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