Capital gains tax?? Gifted Property Please help

[Deleted User]

Chellef19 wrote: »

Thank you his whole estate is less than £325,000

Where does a declaration of trust come in?

Do i have to do a tax return in January 2020 to declare all this? Personally cannot afford an accountant

Yes you do, as I said earlier. An accountant /tax adviser should do it for a few hundred at most - a fraction of your other legal costs. I can never understand why would risk making an incorrect return to save a few quid and for peace of mind.

Keep_pedalling

[Deleted User] wrote:

But the property is covered by the additional property allowance as its value is less than £125000.

I do not believe it is, although making your home a gift with reservation keeps it in your estate for IHT purposes I am pretty sure it stops you claiming the RNRB, as you no longer own a property to claim against.

[Deleted User]

Keep_pedalling wrote: »

I do not believe it is, although making your home a gift with reservation keeps it in your estate for IHT purposes I am pretty sure it stops you claiming the RNRB, as you no longer own a property to claim against.

Fair enough - news to me.

Chellef19

[Deleted User] wrote:

Yes you do, as I said earlier. An accountant /tax adviser should do it for a few hundred at most - a fraction of your other legal costs. I can never understand why would risk making an incorrect return to save a few quid and for peace of mind.

I dont have £1 to my name at the moment you dont know people’s financial situations so please do not judge- HMRC online is set up to use and talks you through it i am holding money from the sale before it is split to cover double capital gains - but at the moment i use food banks so with all due respect a “few hundred” is not something i have at present

xylophone

Your GF should have been advised to pay a commercial rent to the three of you after gifting it,

It would appear that the grandfather gifted it to only one person - rent would not have been due to three people.

Thank you for your reply the house deeds were changed into my name in 2005 with regards to splitting it between three people that was just an agreement between my grandad and myself verbally nothing is wrote down regarding splitting it

That said, it is very difficult to make out from what the OP has said exactly what did happen - what was this declaration of trust?

xylophone

OP - are you on means tested benefits at the moment?

[Deleted User]

Chellef19 wrote: »

I dont have £1 to my name at the moment you dont know people’s financial situations so please do not judge- HMRC online is set up to use and talks you through it i am holding money from the sale before it is split to cover double capital gains - but at the moment i use food banks so with all due respect a “few hundred” is not something i have at present

My goodness - I was trying to help you - can’t see how advising to pay for advice can be deemed as ‘judgement’ I would have thought that my contributions would have reassured you.

On your first post you indicated that you would have to hold back money to potentially pay taxes next January. Now you don’t have to. Read my second post - there is no capital gains!

Chellef19

Apologies when something’s are wrote they can come across differently and i have misinterpreted your reply and I apologise for that- i am just really stressed with it all - basically people are wanting cash from the sale and think i am holding more money back that is needed so would need a rough idea on what to withhold - i just dont want to be left short due to my financial situation - i was thinking £15000 to hold back as i dont know what the house was woth in 2005 iv looked at sold prices “around” that time and worked out an average but my GF house is the biggest plot in the village but average is around £96000 based on 7 property sales? If i say £88000 for price when obtained then i am covering all outcomes?

I honestly have no idea

Pennywise

Chellef19 wrote: »

I honestly have no idea

Then you have no choice but to get a professional valuation. It should have been done at the time of the gift, but if it wasn't you need to do it for your capital gains tax return.

Keep_pedalling

As you actually own the whole house, you are actually having to gift 2 thirds of it to other people (although you have no legal obligation to do this) so you can hold back the whole lot until you know what the situation is.

Afraid you need to get a professional valuation of the property from a RICS surveyor who will be able to give you a accurate valuation at the time the property was transferred.

Unfortunately your GF made some terrible decisions which has lumbered you with these issues. The fact that you are now supposed to give 2 thirds of the house away could be treated as deliberate deprivation of assets if claiming MT benefits.