Transfer/sale of land and barn to son.

postiepatman

Sorry if I'm confusing things a bit.

postiepatman

Clifford_Pope wrote: »

I didn't pick that up from the OP - I thought it was the father who built the barn and applied for planning permission?
It all belongs to the mother now, but who was the owner at the time of the father's death?

Mum was the owner.

booksurr

the fact your father built the barn is irrelevant, as is the fact he applied for but did not get planning permission. your mother currently owns everything: house, barn and land.

if mother does the transfer you refer to (barn and land) before her death then mother will be liable to CGT at the point of transfer since the property being transferred is not her (exempt) main home

if mother does not do the transfer and it all remains part of her estate then the IHT allowance will be her 325k plus whatever remains of father's 325k allowance, but you have not told us what, if anything, father left to whom in his will. If he left everything to mother only then his full 325k remains, if he gave something to anyone else then his 325 is reduced by the value of that something leaving mother with 325 + ? on her death

postiepatman

booksurr wrote: »

the fact your father built the barn is irrelevant, as is the fact he applied for but did not get planning permission. your mother currently owns everything: house, barn and land.

if mother does the transfer you refer to (barn and land) before her death then mother will be liable to CGT at the point of transfer since the property being transferred is not her (exempt) main home

if mother does not do the transfer and it all remains part of her estate then the IHT allowance will be her 325k plus whatever remains of father's 325k allowance, but you have not told us what, if anything, father left to whom in his will. If he left everything to mother only then his full 325k remains, if he gave something to anyone else then his 325 is reduced by the value of that something leaving mother with 325 + ? on her death

Dad left everything to mum.

xylophone

http://www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold.htm

postiepatman

If this does go through, can mum offset a capital gains tax allowance against the tax bill, which I believe is over £11000 for this financial year?

booksurr

postiepatman wrote: »

If this does go through, can mum offset a capital gains tax allowance against the tax bill, which I believe is over £11000 for this financial year?

read up on how CGT works then pay a professional to advise on how to mitigate it for your mother, there are loads of things beside the personal allowance which you have no idea about
http://www.hmrc.gov.uk/cgt/intro/basics.htm