Sold inherited house- am I a ftb?

da_rule

Tom99 - I was a bit dubious as I was typing it, however, a DoV, whilst being primarily used for IHT benefits etc does not have to be used that way. In fact the law makes it clear that the deed will still have effect even without the prescribed statements in relation to IHT and CGT it just will not have the benefits of these tax benefits.

One of the primary purposes of the DoV is to vary entitlements under the will. The tax thing actually post dates the use of DoV. I cannot see any reason why it cannot be used this was, as essentially the Op will be saying they do not want the house.

G_M

I too am dubious about a Deed of Variation at this late stage - but I'm no expert.


I return to my original advice - speak to the solicitor involved. He can explain what happened, why, and then draw up an appropriate DoV if that is the appropriate course of action.

sheepy21

Thanks everyone, my head hurts from trying to figure it out:undecided. My aunt is going to ask them on Tuesday whose names were put in the as1 in the box about who it was ascending to. I can't recall mine and my sisters names being in box six, though I'm a bit concerned as our names were in the declaration of trust in that form. I'm wondering if that suggests a beneficial interest as opposed to legal interest? But I'm assuming that even just a beneficial interest would count with regards to my ftb status

sheepy21

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SDLT_Geek

It seems that the beneficial interest in the property was assented out to the beneficiaries before the sale to the aunt.

sheepy21

SDLT_Geek wrote: »

It seems that the beneficial interest in the property was assented out to the beneficiaries before the sale to the aunt.

That's what I'm thinking :eek: does a beneficial interest count as it wasn't a legal interest? Be gutted if I'm not ftb, I have the flipping help to buy isa and don't have the money aside for stamp duty _pale_

Tom99

[FONT=Verdana, sans-serif]
[/FONT] [FONT=Verdana, sans-serif]Its the beneficial interest which is the one used for tax purposes so you need to ask the solicitors who dealt with the transfer of your grandmother's house:[/FONT]

• [FONT=Verdana, sans-serif]What exactly happened and was I a beneficial or legal owner even for a short space of time?[/FONT]
• [FONT=Verdana, sans-serif]If so, why was the transfer done that way? If for CGT reasons then why have I not been told about any liability I may have to report the sale to HMRC as part of my tax return and also been provided with all of the figures I will need to make my own CGT calculation. [/FONT]
• [FONT=Verdana, sans-serif]Why was I not told that a transfer in this way may affect my FTB status before being asked to sign the assent/transfer documents?[/FONT]

[FONT=Verdana, sans-serif]Alternatively:[/FONT]

sheepy21 wrote: »

I spoke with my solicitor and they felt that I'm a ftb as although I inherited, I didn't own the house and my aunt bought us out immediately.

[FONT=Verdana, sans-serif]You are not a tax expert and your solicitor should know, so one option is to take their word for it and stop asking any-more questions.[/FONT]

cryptoking18

According to me you will not be ftb because an estate was settled, the property and registered to the customer and then purchased from you

sheepy21

Why do would I be liable for cgt? She passed in December, house was valued in January, sale was completed in April.

Tom99

sheepy21 wrote: »

Why do would I be liable for CGT? She passed in December, house was valued in January, sale was completed in April.

[FONT=Verdana, sans-serif]Its very unlikely you would have a CGT liability but reducing the CGT bill is the main reason why probate property is 1st transferred to the beneficiaries before selling to a 3rd party, which is what appears to have happened.[/FONT]
[FONT=Verdana, sans-serif]
[/FONT]
[FONT=Verdana, sans-serif]CGT can be payable if a property is sold at more than probate value, the estate has one £11,700 annual allowance and pays CGT at 28% but if the property is 1st transferred to two or more beneficiaries they each have an allowance of £11,700 and also may only pay 18%.[/FONT]
[FONT=Verdana, sans-serif]
[/FONT]
[FONT=Verdana, sans-serif]In your case CGT would only come into play if your aunt paid you more than 25% of the probate value for your 25% share.[/FONT]