selling house to son process

canaldumidi

cluelessoldf said:

theartfullodger said:

Assuming you haven't lived in it all the time there will be CGT to pay, ultimately HMRC can decide to tax you on what they think is market value, not what paperwork says.  Declared and paid within , 60 days of sale (!)

You should at the least get day 3 valuations of the place.  I'd never sell on the basis of the purchaser's valuation, for obvious reasons, and doubt HMRC would accept that figure.

When I did maths £130 divided by 3 wasn't £43.

What evidence do you have for son and ex having a beneficial interest in the place?  Paperwork?

Has any rent been being paid for his or anyone else's occupation?

Artful, 74 yr old oldf

He has had 3 valuations done, all saying the same.. around 130-140. zopa, strike and some local estate agent. 

'Zopa'? If you mean 'Zoopla' then ignore this completely.

Likewise 'strike'.

How many local estate agents? I suggest 3+.

no rent being paid since I moved out, he does pay all the bills though. 

No CGT to pay as I have been living with a new partner, we don't own that house and its not my secondary legal residence. I own one house and always have

You moved out so it was no longer your primary residence. Therefore there is a potential Capital Gains Tax liability when you sell. This will be based on

*  the price you paid at purchase

*  the market price when you transfer to your son

* how many years you lived there

* how many years you did not live there

* plus allowances eg capital improvements, seling costs, your annual CGT allowance

theartfullodger

cluelessoldf said:

theartfullodger said:

................
You should at the least get day 3 valuations of the place.  I'd never sell on the basis of the purchaser's valuation, for obvious reasons, and doubt HMRC would accept that figure.
................

He has had 3 valuations done, all saying the same.. around 130-140. zopa, strike and some local estate agent. 

..............

That's the issue HE's had 3 valuations done: To protect your interests, especially relating to HMRC believing you, YOU should get 3 valuations done.

If you owned it & were living elsewhere of course there's CGT to be paid..

cluelessoldf

canaldumidi said:

cluelessoldf said:

theartfullodger said:

Assuming you haven't lived in it all the time there will be CGT to pay, ultimately HMRC can decide to tax you on what they think is market value, not what paperwork says.  Declared and paid within , 60 days of sale (!)

You should at the least get day 3 valuations of the place.  I'd never sell on the basis of the purchaser's valuation, for obvious reasons, and doubt HMRC would accept that figure.

When I did maths £130 divided by 3 wasn't £43.

What evidence do you have for son and ex having a beneficial interest in the place?  Paperwork?

Has any rent been being paid for his or anyone else's occupation?

Artful, 74 yr old oldf

He has had 3 valuations done, all saying the same.. around 130-140. zopa, strike and some local estate agent. 

'Zopa'? If you mean 'Zoopla' then ignore this completely.

Likewise 'strike'.

How many local estate agents? I suggest 3+.

no rent being paid since I moved out, he does pay all the bills though. 

No CGT to pay as I have been living with a new partner, we don't own that house and its not my secondary legal residence. I own one house and always have

You moved out so it was no longer your primary residence. Therefore there is a potential Capital Gains Tax liability when you sell. This will be based on

*  the price you paid at purchase

*  the market price when you transfer to your son

* how many years you lived there

* how many years you did not live there

* plus allowances eg capital improvements, seling costs, your annual CGT allowance

Hi Mate

thanks for words. I have never officially moved out, how will the HMRC prove that I haven't been living there the whole time? I have lived in the house since the 60s since it was my mother and fathers, and not been living there since 2019

theartfullodger

cluelessoldf said:

..

.....
no rent being paid since I moved out, he does pay all the bills though. 

Rent doesn;t have to me money.  It may also be "money's worth", so if e.g. he was paying insurance, repairs, re-decoration costs then very likely that would be ruled rent and you should have declared it to HMRC...

cluelessoldf

theartfullodger said:

cluelessoldf said:

..

.....
no rent being paid since I moved out, he does pay all the bills though. 

Rent doesn;t have to me money.  It may also be "money's worth", so if e.g. he was paying insurance, repairs, re-decoration costs then very likely that would be ruled rent and you should have declared it to HMRC...

council tax, electric, gas

theartfullodger

cluelessoldf said:

.....

Hi Mate

thanks for words. I have never officially moved out, how will the HMRC prove that I haven't been living there the whole time? I have lived in the house since the 60s since it was my mother and fathers, and not been living there since 2019

So you are telling us you are planning on defrauding the tax man?? If that is the case I hope, if only for the sake of all decent tax-payers, that HMRC find out & apply such fees and penalties as they may.  You might be surprised to find out how much they know about us all these days.

cluelessoldf

theartfullodger said:

cluelessoldf said:

.....

Hi Mate

thanks for words. I have never officially moved out, how will the HMRC prove that I haven't been living there the whole time? I have lived in the house since the 60s since it was my mother and fathers, and not been living there since 2019

So you are telling us you are planning on defrauding the tax man?? If that is the case I hope, if only for the sake of all decent tax-payers, that HMRC find out & apply such fees and penalties as they may.  You might be surprised to find out how much they know about us all these days.

no defrauding going on here. I don't own two houses

from HMRC

" Only or main residence

If you live in, as your home, 2 or more houses, you can only have one main residence at a time for Private Residence Relief.

You can nominate which residence is to be treated as your main residence for any period "

Then I nominate the house I actually own

user1977

cluelessoldf said:

theartfullodger said:

cluelessoldf said:

.....

Hi Mate

thanks for words. I have never officially moved out, how will the HMRC prove that I haven't been living there the whole time? I have lived in the house since the 60s since it was my mother and fathers, and not been living there since 2019

So you are telling us you are planning on defrauding the tax man?? If that is the case I hope, if only for the sake of all decent tax-payers, that HMRC find out & apply such fees and penalties as they may.  You might be surprised to find out how much they know about us all these days.

no defrauding going on here. I don't own two houses

from HMRC

" Only or main residence

If you live in, as your home, 2 or more houses, you can only have one main residence at a time for Private Residence Relief.

You can nominate which residence is to be treated as your main residence for any period "

Then I nominate the house I actually own

But it isn't your residence. You've just told us you haven't resided there since 2019.

canaldumidi

no defrauding going on here. I don't own two houses

from HMRC

" Only or main residence

If you live in, as your home, 2 or more houses, you can only have one main residence at a time for Private Residence Relief.

You can nominate which residence is to be treated as your main residence for any period "

Then I nominate the house I actually own

That's not how it works. Your quote clearly says "If you live in, as your home, 2 or more houses,...."

a) You don't own 2 houses so cannot nominate between them and

b) you don't  'live in' them both

Hi Mate

thanks for words. I have never officially moved out, how will the HMRC prove that I haven't been living there the whole time? I have lived in the house since the 60s since it was my mother and fathers, and not been living there since 2019

I (and others) are explaining the law. Whether you choose to follow the law or break it is up to you. Whether HMRC can, and do, catch you out, is not something I or others can foresee.

But clearly from what you've written, you do intend or hope to defraud HMRC since you do not qualify for primary residence relief. Mate.

Having said that, do the maths- you may not actually have a CGT liability due to allowances etc.

ps:no idea what you mean by " I have never officially moved out". Either a property is your primary residence or it is not. Since you earlier said you'd moved out, then it is not.

Slithery

cluelessoldf said:

no defrauding going on here. I don't own two houses

from HMRC

" Only or main residence

If you live in, as your home, 2 or more houses, you can only have one main residence at a time for Private Residence Relief.

You can nominate which residence is to be treated as your main residence for any period "

Then I nominate the house I actually own

But you don't live in them both as your home - you moved out...