Buying second home - C.G.T

Stavros_3

Sorry, if this has been discussed b4, but here goes. wife and I are buying a second home for her mother to live in. I am a 20% tax payer, wife is 40%. Are we better doing it in joint names, or in mine as a lower tax payer regarding CGT. In any case we both retire in 2 years time ourselves. Many thanks

maypole

Regarding CGT in my opinion, better in both names as, when you come to sell, you would have a CGT allowance of £9200 each.

silvercar

I agree with Maypole.

By the time you sell, you could both be retired and maybe only basic rate tax payers.

missile

If you buy it in mother in laws name you will avoid CTG entirely on future sale and if her estate is less than £300,000 there will be no IHT either. One concern could be if your MIL writes a will naming someone else as beneficiary.