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capital gains and mortgage advice
Scottie48
Posts: 16 Forumite
Hi,
A new member seeking advice please,I'll try to keep my question as brief as possible. We are corrently away from the family home due to illness ( relative with dementia) and my son is looking after the house. It's too big for him and we are considering selling it and buying him a smaller property from the proceeds of the sale, first question would Capital Gains tax be payable on any profit from this? In effect this would be a cash purchase, is this the way to go or is there any benefit in my son having just a small mortgage from a tax point of view? The reason I ask this question is because looking ahead we may be in a position to buy a second property for ourselves and if both properties were in our name would we get clobbered for tax? Hope what I have written makes sense, any advice would be greatly appreciated
A new member seeking advice please,I'll try to keep my question as brief as possible. We are corrently away from the family home due to illness ( relative with dementia) and my son is looking after the house. It's too big for him and we are considering selling it and buying him a smaller property from the proceeds of the sale, first question would Capital Gains tax be payable on any profit from this? In effect this would be a cash purchase, is this the way to go or is there any benefit in my son having just a small mortgage from a tax point of view? The reason I ask this question is because looking ahead we may be in a position to buy a second property for ourselves and if both properties were in our name would we get clobbered for tax? Hope what I have written makes sense, any advice would be greatly appreciated
0
Comments
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Is the property your only or main residence?
Where are you living? For how long?0 -
As long as it's still your main residence or even if not it has been within 18 months, there's no CGT to pay.
There's no tax advantage to having a mortgage
If you bought two houses you'd need to pay 3% extra tax on the second one you bought.0 -
Many thanks for your reply, yes although we are currently not living there it is our main residence, in Hampshire and been there around 25 years0
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If you'd like to buy your son a house but still have some control, and also not have to pay the extra 3%, lend him the money to buy it, your loan secured via a charge on the property.0
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