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kazzamunga wrote: »huh? you mean they find out the value of the flat when my mum died even though we weren't selling it then, and base it on that? that can't be right?
The only information I can find is about property which has increased in value since the person's death (this definitely hasn't), and ones that talk about inherited property, which isn't exactly relevant here, as the flat is in my name with my mum's name attached - so it's not really an inheritance.
Mum owned an equitable interest. And what I wrote can indeed be right. Mum's executors should have had the flat valued. Otherwise, how did they account for her interest when applying for probate?No reliance should be placed on the above! Absolutely none, do you hear?0 -
If you have more information about this can you provide it, as I can't find anything online. As I say - the value has gone down since 2018, not up. So why would we be hit for more tax while receiving less for the flat, based on a spurious estimate of what it might have sold for a year ago?
(Fml.)0 -
Where did I say more tax?No reliance should be placed on the above! Absolutely none, do you hear?0
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Where did I say more tax?
I can't tell if you're being purposely unhelpful or not. I'm trying to get some information about CGT, if you know how it works I'd be really grateful if you could actually share this instead of posting opaque questions.
Let's say that the flat in 2018 was supposedly worth 300k, and now it sells for 280.
The flat was originally bought for 245, so that's 55k equity, 27.5k to my mum.
As we've ascertained, that won't happen now - we're more likely to get 280, say, for it. So that's 17.5k to me, 17.5k to my mum.
Could you explain, in this hypothetical situation, how the CGT would work? If you can't, just say and I'll find out elsewhere.0 -
kazzamunga wrote: »huh? you mean they find out the value of the flat when my mum died even though we weren't selling it then, and base it on that? that can't be right?
Only your mums share gets reset at her death for what is now your dads share.
The value at that time should have been established for estate administration purposes.
AS it is the base value that gets reset and it is most likely there has been no gain since then your dads interest will most probably have no CGT.
Depending on the exact working of the DOT it may not be 50:50 beneficial ownership.
You will have to do a CGT calc based on your share and occupation time.
Now your brother is living in it and paying there will be an income tax implication.0 -
Ok thanks I'll look into it.0
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Also just realized as much of the equity was provided by you mother there will be an element of a gift(maybe gift with reservation) into the house/trust that would have also needed to be accounted for during estate administration.
This may not have resulted in any IHT but will have resulted in a reduction in any transferable nil rate band for your dads estate.0 -
getmore4less wrote: »Also just realized as much of the equity was provided by you mother there will be an element of a gift(maybe gift with reservation) into the house/trust that would have also needed to be accounted for during estate administration.
This may not have resulted in any IHT but will have resulted in a reduction in any transferable nil rate band for your dads estate.
It's likely this was just a bare trust. So, Mum's share would simply be treated as an asset of hers at date of death. Obviously, that's without seeing the trust document.No reliance should be placed on the above! Absolutely none, do you hear?0 -
kazzamunga wrote: »I can't tell if you're being purposely unhelpful or not. I'm trying to get some information about CGT, if you know how it works I'd be really grateful if you could actually share this instead of posting opaque questions.
Let's say that the flat in 2018 was supposedly worth 300k, and now it sells for 280.
The flat was originally bought for 245, so that's 55k equity, 27.5k to my mum.
As we've ascertained, that won't happen now - we're more likely to get 280, say, for it. So that's 17.5k to me, 17.5k to my mum.
Could you explain, in this hypothetical situation, how the CGT would work? If you can't, just say and I'll find out elsewhere.
I'm being extremely helpful, but possibly I overestimated your knowledge of CGT, so you can't understand what I wrote.No reliance should be placed on the above! Absolutely none, do you hear?0 -
agreed - we knew about this.getmore4less wrote: »Also just realized as much of the equity was provided by you mother there will be an element of a gift(maybe gift with reservation) into the house/trust that would have also needed to be accounted for during estate administration.
This may not have resulted in any IHT but will have resulted in a reduction in any transferable nil rate band for your dads estate.0
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