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Renting/Buying off Parents
Comments
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Cautious_Optimist wrote: »If they moved out in 2010, there shouldn't be any CGT liability, so long as you have records of the renovation costs. They may well be looking at a capital loss, if they sold right now...
Why would they be looking at at a capital loss? They paid around £30k for the house back in 1988 then selling to us for £150k today? Renovation costs in 2010-11, which they do have records, came to around £20k0 -
Because (I think), house would only become classed as a "Capital Asset", once they moved out.
Whilst it was their own home it would be classed as PPR and so exempt from capital losses or gains.
But how HMRC would agree a value for 2010, prior to renovation, I'm not sure.
If GF's parents have any shares etc that have made gains, then selling at the same time as realizing any loss on the property may be a good idea.
Best ask your accountant about this.
But definitely keep all records, receipts, emails etc.
I would probably think about all of you meeting with the accountant at the same meeting.0
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