Newly married couple, both homeowners?

My_brain_hurts

Hi,

I have recently married, and I am looking to buy (or re-mortgage) with my wife in her current property.
I have a property in my own name (mortgage free) that my mother lives in rent free, as I am away most of my time with the Armed Forces. I cannot sell my property due to my mum living there, the question I have is this?
To avoid the potential of future CGT, can I transfer my property into my mums name? Is this a simple transfer of equity as no mortgage is involved?
She has no other assets so if I signed the house to her, this would be her total estate (£200,000).
The house would then be left to me in her will, as I have no need for the property in the future (other than securing a place for my mum to live)

Thanks

jamie11

My_brain_hurts wrote: »

Hi,

I have recently married, and I am looking to buy (or re-mortgage) with my wife in her current property.
I have a property in my own name (mortgage free) that my mother lives in rent free, as I am away most of my time with the Armed Forces. I cannot sell my property due to my mum living there, the question I have is this?
To avoid the potential of future CGT, can I transfer my property into my mums name? Is this a simple transfer of equity as no mortgage is involved?
She has no other assets so if I signed the house to her, this would be her total estate (£200,000).
The house would then be left to me in her will, as I have no need for the property in the future (other than securing a place for my mum to live)

Thanks

I have no idea of the answer but well done you. You gift the property to your Mum, hopefully she will survive seven years to make the gift untaxable. I'm burbling, too much JD.

G_M

I can only see one difficulty with this, apart from the fact that the house becomes mum's, so if, (god forbid) you got divorced/seperated, you would no longer own it.

Inheritance tax will not be an issue if that is the sum total of mum's estate.

Capital Gains tax would not be an issue (until you inherit).

There might be an issue in future if you mum needs means-tested Care(eg a care home). The property might have to be sold to pay for the care home.

as an aside, I recall readong somewhere that members of the forces working abroad were exempted from CGT on property but I may well be wrong, and don't know the details. But this might be an alternative solution.

Annisele

There was a thread a while ago about CGT and people in the armed forces: https://forums.moneysavingexpert.com/discussion/2396251.

I agree with G_M; it's worth investigating the tax position more fully before you do anything solely for the purpose of avoiding tax.

Mojisola

My_brain_hurts wrote: »

To avoid the potential of future CGT, can I transfer my property into my mums name?

The house would then be left to me in her will, as I have no need for the property in the future (other than securing a place for my mum to live)

If you give the house to your Mum, then it is hers.

Its value could be used up in care home fees.

She could remarry and the house pass to her husband if she died first.

She could decide to leave the house to someone else or a charity or sell it and spend the money.......

G_M

Thanks annisele - that's what I was thinking of!