We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Tax on house sale proceeds?
Mcjelly
Posts: 1 Newbie
My mother in law has just sold her house and moved into an annexe at our house. She wants to share the proceeds between her 3 sons so they get their inheritance now rather than when she’s gone. Can anyone suggest the best way to do this?
Does she have to pay tax on the sale price (360k)? Any advice/suggestions welcome.
Does she have to pay tax on the sale price (360k)? Any advice/suggestions welcome.
0
Comments
-
No, though if she dies within 7 years it will be taken into account when calculating Inheritance Tax.2
-
You do not pay tax on selling your primary resident.
She should seek paid legal advice though incase she may need state care in the future, partially deprivation of assets, although I would think that if she got scammed in some way I bet that wouldn't apply.0 -
It isn't an "inheritance" if she isn't dead. It's just a gift.
And gifts are subject to IHT, tapering over 7yrs, and indefinitely to deprivation of assets should she need care.2 -
No tax on the sale proceeds.Inheritance tax on the gift if she dies within 7 years (tapered), though if she did not gift the money then it would be 100% included in her Estate for IHT.The gift may fall within definiion of 'Deprivation of Assets' if she applies for council funding for care.1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.7K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.3K Work, Benefits & Business
- 605.8K Mortgages, Homes & Bills
- 179K Life & Family
- 263.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards