We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
CGT again
Options

jrp204
Posts: 2 Newbie
in Cutting tax
My father has handed over the cottage that we have been living in for the past 25 years. The cottage is part of the family farm but has not been lived in at all by my parents. There is expected to be a CGT of 36k which i appreciate is my parents liability but we will be paying. Is there any way of lessening this bill? My parents are basic rate tax payers and their allowances have been included. In the past we have had to sign a document that allowed the bank to have a charge on the property when more land was purchased so i assume it was seen as security on the loan.
It is still a cheap house but it would be nice if we could lessen the debt.
It is still a cheap house but it would be nice if we could lessen the debt.
0
Comments
-
http://www.hmrc.gov.uk/cgt/property/reliefs.htm
Who or what owns the cottage - your parents? The farm business (limited co?).In the past we have had to sign a document that allowed the bank to have a charge on the property when more land was purchased so i assume it was seen as security on the loan.
"We"? Your parents? The directors of the business/ You/your partner?
Does the property still stand as a security for a loan (to your parents/the business/you?)
Might it be a good idea to run this past the farm's accountant?0 -
you say "family farm" and you have been living in the cottage for 25 years.
IF you are engaged in agriculture yourself whilst living there then, irrespective of the fact your parents have not occupied it, they as the transferor MAY be entitled to agricultural relief
I suggest you read up on the bits relating to transfer of property and see if any applies
http://www.hmrc.gov.uk/cto/customerguide/page17.htm#120 -
We have been farming on a fbt 60 acres about a mile away, we also own 4 acres and a large ag shed 1/4 mile away. The cottage is part of the family farm now run by parents and brothers. Im not sure if it is security any longer. The farm is not a ltd co.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.8K Work, Benefits & Business
- 598.6K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards