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Budget 2015 IHT changes and parent in nursing home
Marty4
Posts: 3 Newbie
in Cutting tax
Hi - apologies if this has been answered before on the forum but couldn't find it.
My parents completed sale of their main residence to move into a nursing home on the 2nd July 2015. The IHT changes brought in "downsizing" rules from 8th July so the timing was not good!
If they buy a house now will it be counted as a main residence or would it be seen as an investment property - for both IHT and CGT? It will be their only residence and theoretically they could move into it with live-in care. I understand from HMRC site that a a main residence keeps that status for 2 years after you move into a nursing home.
Does anyone know whether this applies if there is a property sale and purchase in that 2 year period?
Many thanks
Marty
My parents completed sale of their main residence to move into a nursing home on the 2nd July 2015. The IHT changes brought in "downsizing" rules from 8th July so the timing was not good!
If they buy a house now will it be counted as a main residence or would it be seen as an investment property - for both IHT and CGT? It will be their only residence and theoretically they could move into it with live-in care. I understand from HMRC site that a a main residence keeps that status for 2 years after you move into a nursing home.
Does anyone know whether this applies if there is a property sale and purchase in that 2 year period?
Many thanks
Marty
0
Comments
-
It will only count if they live in it, which sounds unlikely. The best way to avoide leaving an IHT liability is to buy the best care they can and live for many years (that's my plan anyway)0
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