Gifting money from selling a property

penners324

Is this a rant about taxes or the government?

silvercar

Brie said:

If you gift a large sum there's also the potential it will be considered deprivation of assets should you ever need assistance from the local council for your care.  People who have spare money think it might not be relevant but you should be prepared in case of a dramatic change of circumstances.  Basically the council could, quite legally, consider your child should pay for your care.

 It if you can show there was no expectation of care needs at the time the gift was made. 

silvercar

Back to the OP,

did you ever live in the property at any time while you (part) owned it? If so you will have allowance for the time it was your home and the last 9 months of ownership. Otherwise you have the CGT allowance. Post some figures if you want a rough calculation.

Keep_pedalling

diystarter7 said:

user1977 said:

maggiesoup said:

Just been advised that I'll probably be due Capital Gains Tax though.  There seems to be no incentive to work hard and put money into something for your retirement or to benefit your children. 

You don't think keeping at least 72% of the gain is enough?

And what if the price had crashed when it was bought and had to sell at a loss. Would the government have paid him to make up the loss, I doubt it. Its tax on tax and tax then care home fees if you need to go into one and then the final insult for many that have worked all of their lives and spent prudently and saved wisely is the IHT.

Losses can be offset against gains in other assets. I really don’t get the attitude about not taxing unearned income. Why should someone have to pay tax on money they earn though their labour, and others pay no tax on a profit they have done little to earn.

Up to now CGT has been pretty easy to avoid on investments for most people through the annual allowance and bed and ISA, not possible on property but that is something someone who invests in property needs to factor in.

diystarter7

silvercar said:

Brie said:

If you gift a large sum there's also the potential it will be considered deprivation of assets should you ever need assistance from the local council for your care.  People who have spare money think it might not be relevant but you should be prepared in case of a dramatic change of circumstances.  Basically the council could, quite legally, consider your child should pay for your care.

 It if you can show there was no expectation of care needs at the time the gift was made. 

An excellent statement of the facts. Sadly, too many scare stories re 'deprivation of assets!

You earned it, you have money, you are relatively fit and no indication you will need care, how on earth can someone prove that someone knew they were going to have an accident and or medical incident serious enough to place them in a home? They can't is the simple answer and I always recommend people fearful and or unsure consult a benefits expert/solictor or a CM that specialises in funding for care homes.

MobileSaver

diystarter7 said:

silvercar said:

Brie said:

If you gift a large sum there's also the potential it will be considered deprivation of assets should you ever need assistance from the local council for your care.  People who have spare money think it might not be relevant but you should be prepared in case of a dramatic change of circumstances.  Basically the council could, quite legally, consider your child should pay for your care.

 It if you can show there was no expectation of care needs at the time the gift was made. 

An excellent statement of the facts. Sadly, too many scare stories re 'deprivation of assets! ... You earned it, you have money, you are relatively fit and no indication you will need care

While I agree that there are many scare stories, it's also true that most people only start thinking about disposing of assets once their health deteriorates so needing future care often is the trigger.

The OP is approaching 70 years of age so it wouldn't be surprising if they had some health issues. However if their doctor confirms they are perfectly fit and healthy with no expectation of care at this time then the local authority investigation into deprivation of assets will go nowhere.