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Selling my elderly parents house as she’s gone into care.
worldtramper
Posts: 4 Newbie
Hello
My elderly mother (89 years old) has to go into care and owns her own house outright.
At the start she won’t need to sell the house to pay for care as she has savings.
My question is - If we then sell the house to pay for her care after her savings has run out, Will she pay any form of tax on the sale of the property?
My elderly mother (89 years old) has to go into care and owns her own house outright.
At the start she won’t need to sell the house to pay for care as she has savings.
My question is - If we then sell the house to pay for her care after her savings has run out, Will she pay any form of tax on the sale of the property?
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Comments
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..unlikely?....what sort of tax are you thinking of?0
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Do you hold a POA?0
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Hi Guys
I don’t know what kind of tax I was thinking? I was hoping she wouldn’t as her house is way under £200k
Yes I hold POA0 -
The value of her house is irrelevant if it is her main residence being sold to pay for care home fees.0
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Hi Worldtramper,
Why "if we then sell"? - I would suggest the house is put on the market as soon as it can, once your mum is settled in the home and will never return, then sell it, and put the money in the pot for her care. Don't wait for her current savings to reduce as the process will probably take a long time than expected. Also, reduce the time it is empty (Council Tax trap?) and do not consider trying to make money from renting.
Good luck
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Thank you thank you for all your prompt responses.
So when we sell the house will we have to pay any form or sort of tax on the sale?
Im just thinking ahead if we need to cover this before the sale?0 -
There is no tax to pay when selling your main residence no other than estate agent and solicitor fees.When using the housing forum please use the sticky threads for valuable information.1
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When a principal private residence is sold, there is normally no CGT on sale.
However, if the property were rented out for a few years and prices increased, there could be?
https://forum.alzheimers.org.uk/threads/capital-gains-tax-on-sale-of-house-used-to-fund-care.99288/
It would seem easier all round to sell the property and save/invest the proceeds as appropriate to fund your mother's care.
It might be worth looking into an immediate needs annuity - only two providers now.
https://ukcareguide.co.uk/immediate-care-annuity/
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