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Gifted House

MrEnigma
MrEnigma Posts: 113 Forumite
Part of the Furniture 100 Posts
in House buying, renting & selling
Hi group.

Last June my mother gifted me her house which was at the time worth £285000.
I was renting a property at the time, so thought it best to move in with her.

Question is: Do I have to charge her rent? In order to comply with any tax rules.
«13

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Your mum has gifted you the property that she currently lives in? What was she trying to achieve/avoid by doing this?

    If she continues living there free of charge then it will have been a Gift With Condition meaning the property will not be exempt from Inheritance Tax. However, depending on the size of her estate this might not be an issue.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    MrEnigma wrote: »
    Hi group.

    Last June my mother gifted me her house which was at the time worth £285000.
    I was renting a property at the time, so thought it best to move in with her.

    Question is: Do I have to charge her rent? In order to comply with any tax rules.

    Deja vu: https://forums.moneysavingexpert.com/discussion/5434823
  • MrEnigma
    MrEnigma Posts: 113 Forumite
    Part of the Furniture 100 Posts
    She gifted the house, as that was what she wanted in her will. She was concerned that the will might of got challenged.
  • Victor_the_Gink
    Victor_the_Gink Posts: 155 Forumite
    Why did she do it at all? Does she have significant assets otherwise?

    I will never understand people who make life changing decisions they wouldn't otherwise have made to save a few thousand quid of tax.
  • zagfles
    zagfles Posts: 21,684 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Google POAT
  • MrEnigma
    MrEnigma Posts: 113 Forumite
    Part of the Furniture 100 Posts
    Victor_the_Gink wrote: »
    Why did she do it at all? Does she have significant assets otherwise?

    I will never understand people who make life changing decisions they wouldn't otherwise have made to save a few thousand quid of tax.

    Total assets just under £325,000
  • Catswhiska
    Catswhiska Posts: 103 Forumite
    Hope she never needs nursing care. Deprivation of assets
  • MrEnigma
    MrEnigma Posts: 113 Forumite
    Part of the Furniture 100 Posts
    Catswhiska wrote: »
    Hope she never needs nursing care. Deprivation of assets
    Yes something to consider.
    Has been suggested that after 3 years, deprivation of assets gets nulled
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    MrEnigma wrote: »
    Yes something to consider.
    Has been suggested that after 3 years, deprivation of assets gets nulled

    Suggested by whom? Not the local authority.
  • MrEnigma
    MrEnigma Posts: 113 Forumite
    Part of the Furniture 100 Posts
    Penitent wrote: »
    It looks like your question was answered in your previous thread, so I'm not sure why you're asking again. Do you want to charge her rent?
    Indeed no, I do want to charge her rent. I was listening to the radio, and it was pointed out that rent would be chargeable at Market rate, and tax would need to be paid on it. This has confused me.
This discussion has been closed.
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