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Buying flat in someone else's name

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Comments

  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    Amychris7 wrote: »
    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?
    Why would she stop wanting the income?
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    edited 10 June 2014 at 4:40PM
    Mojisola wrote: »
    That's not the same as owning the property. She couldn't sell the property because she isn't the owner.
    agreed,
    however the CGT liability is hers, not the legal owner's
    http://www.hmrc.gov.uk/manuals/cgmanual/cg70230.htm
    so when OP decides to sell as the legal owner it is his mother who will have to pay any CGT due although a complication would arise if OP received the sales proceeds instead of his mother as then the balance of who is the beneficial owner is less clear and professional advice would be needed in that case
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    edited 10 June 2014 at 4:41PM
    Amychris7 wrote: »
    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?
    correct, such a disposal to a "connected person" would "crystallise" her CGT liability since she is gifting her beneficial ownership to you. A gift is a CGT disposal
  • Amychris7
    Amychris7 Posts: 5 Forumite
    00ec25 - so therefore if she gifted her beneficial ownership to us and then died within 7 years we would then pay IHT ? And what is crystallising?
  • troubleinparadise
    troubleinparadise Posts: 1,120 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Amychris7 wrote: »
    00ec25 - so therefore if she gifted her beneficial ownership to us and then died within 7 years we would then pay IHT ? And what is crystallising?

    No, your mother's estate would pay any IHT that might be due.
This discussion has been closed.
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