Capital Gains Tax

misspiggy2

My mum would like to sell her house and come to live with me, my husband and children. She said she would like to share the value of her house total approx £120,000 between herself, my brother and me. If she did this would we all be liable for capital gains tax? Any advice would be greatly appreciated. Many thanks.

Alfie_E

If she’s lived in the house for all the time she’s owned it, she would have be no liability for capital gains tax. It’s only the person doing the selling that’s liable for capital gains tax. She’s completely free to do whatever she likes with the money she gets from selling it.

If your mum were to die in the next seven years, any gifts would have to be taken into account when considering inheritance tax. You would have to add the value of all the gifts to the value of anything she still possessed when she died. However, this total would have to come to more than £300,000 before there would be any inheritance tax to pay. And, each year, the amount before there’s any inheritance tax to pay goes up and up.

misspiggy2

Thank you so much for such a quick response and good advice.