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Buying flat in someone else's name

2

Comments

  • Mojisola
    Mojisola Posts: 35,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    And if you or your brother need to claim means tested benefits, you won't be able.

    If either of you gets divorced, the flat will be included in the financial settlement.

    If either of you go bankrupt, the flat will be an asset.

    What are your plans if you die before your mother?
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Mallotum_X wrote: »
    The taxation on the rental profits are supposed to be in line with the ownership.

    no - you have not understood the difference between beneficial and legal ownership where the two parties are NOT married to each other
  • Amychris7
    Amychris7 Posts: 5 Forumite
    Bantex- she would like to buy to let to invest her cash into property. It would just be in our names.
    00ec25-would we not pay any CGT as being the owners on paper?
  • Mojisola
    Mojisola Posts: 35,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Amychris7 wrote: »
    Bantex- she would like to buy to let to invest her cash into property. It would just be in our names.

    Then she's not investing her money in property - she's giving you her money and you are investing in property.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Amychris7 wrote: »
    00ec25-would we not pay any CGT as being the owners on paper?
    CGT is based wholly on who is the beneficial owner, not who is the legal owner.
    your mother, not you, would be liable for CGT (and income tax)

    Proof? read the HMRC capital gains (ie CG) manual
    http://www.hmrc.gov.uk/manuals/cgmanual/cg11730.htm
  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    Amychris7 wrote: »
    Bantex- she would like to buy to let to invest her cash into property. It would just be in our names.
    00ec25-would we not pay any CGT as being the owners on paper?
    Why in your names rather than hers? What is the advantage?
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Mojisola wrote: »
    Then she's not investing her money in property - she's giving you her money and you are investing in property.
    wrong, she retains beneficial ownership
  • Mojisola
    Mojisola Posts: 35,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    00ec25 wrote: »
    wrong, she retains beneficial ownership

    That's not the same as owning the property. She couldn't sell the property because she isn't the owner.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Bantex wrote: »
    Why in your names rather than hers? What is the advantage?

    provided she lives for 7 years it (legally) avoids inheritance tax since Amychris7 would then be the legal owner of a property which neither he nor his mother lived in (avoids gift with reservations of benefit issues) so on her death after 7 years he would have absolute title to the property and no IHT would be due
  • Amychris7
    Amychris7 Posts: 5 Forumite
    00ec25- so am I right in thinking she could buy it and then when no longer needs/ wants the income she transfers it to us - disposing of the asset- and she's pays any CGT it may have made?
This discussion has been closed.
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