gifted deposit

natnat253

kingstreet wrote: »

But kingstreet has no idea what paperwork you are referring to and can only suggest you speak to whoever is arranging this mortgage/purchase.

hi kingstreet. Basically we are very confused! mother in law is scared that she will get stung by capital gains tax and is worried that she is being forced into a sale which she hasnt signed for. no declaration has been drawn up declaring the monies etc. they also want to push the sale at 144k but not the 160k which we all find very confusing. Halifax are not being of any use nor is my solcitor. they want to exchange and complete on the same day ? is there any advice you could kindly offer?

kingstreet

Unfortunately not.

Who is forcing her into this sale? You are the buyer, so is it you? Your broker/advisor? The solicitor?

As I said, you need to speak to whoever is arranging this as there is no way I can tell what has or hasn't been done and if what has been done has been done correctly.

I would have no idea what the legal paperwork should say and suggest you speak to the solicitor handling this.

Your mother in law will pay Capital Gains Tax on the market value less what was paid for the property in the first place and she has an annual allowance which will offset any gains before the tax is calculated. Proper advice should be sought from a tax specialist or accountant.

The help you require is really outside the scope of a forum on the internet and can't be obtained for nothing.

glentoran99

natnat253 wrote: »

hi kingstreet. Basically we are very confused! mother in law is scared that she will get stung by capital gains tax and is worried that she is being forced into a sale which she hasnt signed for. no declaration has been drawn up declaring the monies etc. they also want to push the sale at 144k but not the 160k which we all find very confusing. Halifax are not being of any use nor is my solcitor. they want to exchange and complete on the same day ? is there any advice you could kindly offer?

What % LTV is on your mortgage offer?

amnblog

Your mother in law should be getting legal advice separate from your own. That is the place she can get her fears allayed.

Keep_pedalling

How much did she buy the property for?

dimbo61

Your MIL is running a business and should have an accountant and take legal advice herself.
She bought the property some time ago.
Did she ever live in the property ?
Has it gone up in value since she bought it ?
She has allowances £11,000 to offset against the capital gains tax.
She will only pay CGT on the increase in the value of the property !
So if she bought it for say £100,000 and it is now worth £150,000 she will only pay CGT on £50,000

No matter who she sells the property too she will have to pay tax but there are allowable expenses to take into account.