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Using parent's money to buy house that she will live in
Blagdon41
Posts: 3 Newbie
I am an only child. My mother is elderly and we are considering selling her house as well as the house owned by myself and my husband (mortgaged). can anyone advise me whether I am liable to pay any tax if we use the money from her small house (sixty thousand pounds) as a deposit for a new house that we would all live in. The new house would be mortgaged by my husband and myself?
Thank you
Thank you
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Comments
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No. Anyone can gift whatever sums they like to another. The only danger that I can see would be for your mother to gift this money and then find herself not being an owner or part-owner of anything. Once you've got your hands on her money you could turf her out at any time and she'd have squat and no come-back. You should encourage your mother to take independent advice about doing that.0
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you mother can sell her primary residence without any tax considerations
she can use the money for whatever she wants including giving it to you without any tax
things to think about
-IHT if applicable
-deprivation of assets if she should need state support for care.
- if she isn't part of the ownership of the new property then she might be vulnerable if e.g. you are your OH split up and the property was sold0 -
Are you an only child? If you have siblings your mother in her will would probably want to deal fairly with you all. This could be difficult or impossible if your mother's assets are tied up in your house.0
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I am an only child. My mother is elderly and we are considering selling her house as well as the house owned by myself and my husband (mortgaged). can anyone advise me whether I am liable to pay any tax if we use the money from her small house (sixty thousand pounds) as a deposit for a new house that we would all live in. The new house would be mortgaged by my husband and myself?
Thank you
What would you be doing with any capital gains from selling your house? if you are not putting that back into your primary residence then it would be subject to CGT if it's over the threshold.House Buying Tracker:
Offer Accepted: 8th March Mortgage Application: 8th March Survey Completed: 20th March Survey Report: 22nd March Mortgage Offer: 26th March Exchange: 25th April Completion 22nd May - 11 Weeks0 -
I believe that IHT is not applicable due to the amount. If she does need care then that will be for us to pay for. Thanks for your response.0
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its not much. I will check out CGT limits. Thanks for your response.0
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outdoorcjc wrote: »What would you be doing with any capital gains from selling your house? if you are not putting that back into your primary residence then it would be subject to CGT if it's over the threshold.
Do you have authority for this?
HRMC's site states that you are entitled to private residence relief if you sell you primary residence. It does not state that re-investing the money is a pre-condition of claiming the relief.When you sell or dispose of your own home you won't have to pay any Capital Gains Tax if you satisfy two conditions. For the whole time you've owned it both the following must apply:- it's been your only home or main residence
- you have used it as your home and nothing else
http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm0 -
Is there any reason why you, your mother and your husband should not own the new house as tenants-in -common according to the amounts you are each putting into the property?0
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outdoorcjc wrote: »What would you be doing with any capital gains from selling your house? if you are not putting that back into your primary residence then it would be subject to CGT if it's over the threshold.
this is not correct. there is no tax to pay from selling your home (assuming that you lived in it for the full time that you owned it and never rented it out). it doesn't matter what you do with the sales proceeds, there will be no tax charge on the gain on your home.0 -
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