Advice needed re sitting family tenant - liabilities and tax breaks??

houseimprover

G_M wrote: »

You have misunderstood "deprivation of assets".

Google it.

It will become relevant if she ever needs means tested care.

Out of interest though the OP is saying it was gifted to him 13-14 years ago so would there actually be that much of an effect on DOC as things such as inheritance tax are ignored after 7 years?

I am just asking, I really don't know.

Torry_Quine

houseimprover wrote: »

Out of interest though the OP is saying it was gifted to him 13-14 years ago so would there actually be that much of an effect on DOC as things such as inheritance tax are ignored after 7 years?

I am just asking, I really don't know.

There is no time limit on considering a home for any care costs. It's all down to intention and likelihood of needin care.

houseimprover

Torry_Quine wrote: »

There is no time limit on considering a home for any care costs. It's all down to intention and likelihood of needin care.

Would it be fair to assume the value on the house when it transferred over the value it now then?

Torry_Quine

houseimprover wrote: »

Would it be fair to assume the value on the house when it transferred over the value it now then?

The decision is the council's but they could if they decided it was given away to avoid fees then go by it's current value as they deem her to still have it.

Mojisola

zanzotto wrote: »

I have owned my 87 year old aunt's 2 bed flat for 9 years (originally purchased by her under the council right to buy scheme using money loaned from me, then gifted to me after 3 years had lapsed.)

I have never taken a penny in rent and there is no official tenancy agreement. I pay all buildings insurance, maintenance costs, service charges (communal block) and a landlord policy for boiler, electrical, gas, water breakdown etc.

I should hope not as you are going to benefit from whatever percentage reduction she got for the flat as long as she dies before she needs care.

You may be liable for CGT depending on the increase in value since you were given the flat.

harrys_dad

So you are honestly saying that you connived with her to buy the house so you could benefit from her entitlement to a discount as a sitting tenant? Sounds like fraud to me. Even if it is legal it really should not be. You have received a huge subsidy that you were not entitled to as you were not the tenant, at the expense of the council who originally owned the house and also at the expense of those who currently have a need for social housing.

Despite all this you are still seeking to minimise any future tax liability. Shame on you.

paddedjohn

Although it doesn't seem fair I don't really think anyone can slate the OP for doing what he has done, he has after all forgone the rental income for 13 years so far and the old girl could live for another 13 for all we know. Even at a bargain £75 per week that could add up to circa £100k in missed income plus all the repairs and maintenance which is probably nowhere near the amount saved due to the council discount.