Registering deeds with Land Registry

atush

If you inherit the house, you pay not CGT, if you own it from when you change the name, you would have to pay CGT on any gain above the allowance.

So, if IHT isn't a problem, then keep the house in your father's name.

Then there is the thorny issue of deprivation of assets. If your father ever needed to go into a care home, the loc Authority would not look at the transfer of property very favorably?

BobQ

staro30 wrote: »

Thanks.

Going back a couple of posts. The estate is below the IHT threshold. I would only transfer the house into my name. What are the implications for Capital Gains Tax?

Cheers
Staro

So (for example) say the house was transferred to you today and was worth £200K and your Dad continued to live in it for 5 years, and then passed away/moved.

If the house was now worth £275K and cost £5K to sell, you would be treated as having a capital gain of £70K. Under current CGT laws you have a personal allowance of about £11K (IIRC). so you would be taxed on £59K at either 18 or 28% depending on your marginal rate of tax. So in this example at 18% tax it would nearly £12K.

The point is that you could end up with a five figure tax bill through owning a modest house at a time of modest house price inflation, unless you live there.

I am not sure but you could end up with a CGT bill AND still find the house is treated as your father's in any Deprivation of Assets calculation.

atush

very true.

So if IHT isn't a problem, and you want your father cared for properly, leave it