Gifted House

MrEnigma

Just to be clear. If rent had to be paid at the market rate. Then I would just pay the tax on it myself, and of course not take any rent from her. Further reading tonight suggests that because the estate is less than 325k, then no IHT threshold will be hit. As from April 2017 the threshold is £325,000 + £100,000. Hope that answers your question. As indeed I have now it seems answered mine.
Thanks for help. Those that were helpful.
Can a mod please this thread now.
Thanks

Pixie5740

You'd pay the tax on what yourself? The imaginary rent? That's not how income tax works.

As for the thread being closed....there are no mods.

Red-Squirrel_2

Why would she owe you rent when you live together in a house that you own that she used to own?

Did you pay her rent when you lived in her house when it belonged to her?

MrEnigma

Pixie5740 wrote: »

You'd pay the tax on what yourself? The imaginary rent? That's not how income tax works.

As for the thread being closed....there are no mods.

NO mods eh?

Interesting

That's my last comment, as it seems you guys just want to belittle and not be helpful, which it seems you can do, as there are no mods.

I'm done.

Keep_pedalling

Your mother was foolish to give her major asset away, as it means she is no longer financially independent and is vunable if something happens to you. What would happen if you died first?

If your have not thought about this, and you have children, or estranged siblings or your mother is divorced and your father is still alive then you had better make sure you have a will in place that returned the house to her alone.

And as others have said there is no 3 year statute of limitations on DoA.

getmore4less

there were better ways to do this, the issue with gift with reservation which an appreciating asset is you can not be sure there will be no IHT.

If she had just had you move in and gifted you 1/2 the house it would have been a lot simpler.

xylophone

With regard to DoA

http://www.payingforcare.org/deprivation-of-assets

There are no time limits on how far a Local Authority can go back when considering deprivation of assets. Additionally, if the property was given away before you needed care, the Local Authority could ask the recipients of the property to pay a contribution towards your care.

Re POAT (should it become relevant)

https://www.stoneking.co.uk/literature/info-sheets/guide-pre-owned-assets-tax

The Family Home
Basic guidance is to make gifts of part of a property, but to sell 100% and not part to avoid a POAT problem. Gifts of a part share in a house, where donor and donee both occupy it, such as child living with elderly parent, or at least staying regularly, should be protected from POAT provided the donor continues to pay at least a fair share of the outgoings. For example, in the case of a gift by the parent to children of a 75% share as tenants in common, the parent might still need to pay 50% of the running costs (not just 25%) to reflect a fair share of actual usage.