transfer of property parent to child

dollface83

the house has increased in value as it has been with the family over 30 years. Currently it is valued at ~£250k.
I currently do not own a property but live in another part of the UK. I have no offspring nor partner if that is an issue.

My parents are both retired and over 60. They live in another mortgage free home. Their care will be my responsibility unless they needed critical care that I could not provide as I am no medic. I owe them all I have and will have.
I have only a student debt hanging over me otherwise I am financially sound (off my own back for the record, I have had no handouts from the parents. As a middle child to 3 other siblings that live at home or nearby they have depleted the bank of mum and dad)

p00hsticks

dollface83 wrote: »

the house has increased in value as it has been with the family over 30 years. Currently it is valued at ~£250k.

dollface83 wrote: »

My parents are both retired and over 60. They live in another mortgage free home.

So your parents will potentially face a Capital Gains Tax bill if the transfer the property to you...

Keep_pedalling

p00hsticks wrote: »

So your parents will potentially face a Capital Gains Tax bill if the transfer the property to you...

I would say they would deffinately face a considerable CGT bill and at the same time see a big loss of income by losing the rent n the gifted house.

p00hsticks

Keep_pedalling wrote: »

I would say they would deffinately face a considerable CGT bill and at the same time see a big loss of income by losing the rent n the gifted house.

We can't be definite without knowing whether the parents ever actually had the property as their PPR and if they did how recently they moved out - the OP has stated that it is currently rented out but not said if this has always been the case.

dollface83

My parents have not lived at the house in question for 8 years.

Keep_pedalling

dollface83 wrote: »

My parents have not lived at the house in question for 8 years.

In which case CGT may not be such a problem, especially if they lived in it for the previous 22.

xylophone

In which case CGT may not be such a problem, especially if they lived in it for the previous 22.

They will still need to do the calculation.

If the parents have been in the habit of making gifts to the other siblings that are neither regular gifts from income nor within the gift allowance they may need to consider the IHT position.

The OP will be receiving rental income and needs to consider his income tax position, his responsibilities as a landlord and his position for CGT if he chooses to sell.

He may also need to consider the SDLT position if he buys another property and doesn't sell.

He may wish to make/revise his own will.

dollface83

A SDLT for 250k property amounted to £2,500.

Parents give small hand outs to my siblings nothing regular mainly provide a roof over their head and pay the bills and they are not even embarrassed about it .

dollface83

I shall be off the grid over the weekend but thank you all for your input. Have a lovely weekend folks

dollface83

He may also need to consider the SDLT position if he buys another property and doesn't sell.

He may wish to make/revise his own will.[/QUOTE]


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