capital gains problem

mark_marshall_2

Thanks for the advice. The house was bought in December 2001, so not quite 6 years. What if they bought another house for us,put it in my name and used the present house as a holiday let?

BTman

Ain't HPI a !!!!!..

silvercar

mark_marshall wrote: »

Thanks for the advice. The house was bought in December 2001, so not quite 6 years. What if they bought another house for us,put it in my name and used the present house as a holiday let?

If they don't sell it there is no capital gain (yet!) and no tax to pay.

Holiday lets have more favourable tax treatment, if they can comply with all the rules.

If they buy another house mortgage free they can put it in your name if they want, though there could be inheritence issues in the future. If they are taking a mortgage, they will need to be on the title deeds (unless they act as guarantors for your mortgage.)

noyk

I wish i had your parents

Lazy_Runner

I am not an expert but if your parents gift you the house, don't they also get hit with an inheritance tax bill?

If you can claim that they gave you the house back in 2001, then I think the 7 year rule may apply. But then the revenue may have wanted to see that on their tax return back then? As I said, I am not an expert.

Hopefully more knowledgeable people will be able to advise, or otherwise as suggested, see a tax accountant.

Ooops X-post! Hadn't fully read Silvercar's post about IHT.

silvercar

Don't know how old you, or your parents, are; so I don't know if this applies to you or not.

Sell an asset (other than your private residence) and you are liable to CGT on the gain you have made. Pass away and the CGT disappears but the asset is part of your estate and liable for IHT on everything over £300k. Transfer an asset while your alive and it could potentially be part of your estate until 7 years have passed.

So there is always tha balance between being hit for CGT or IHT. What you really want to avoid is being hit for both!