Capital Gains Tax

af77

Hi all, 
We have some funds from selling my dads house he is still with us but house was is in mine and my brothers name, we have a company set up to use the money to buy some flats to rent out but due to the morgage rates going up we may just put in a high interest account in the name of the company. The issue is we want to make sure we wont pay capital gains taxs as we havnt gained anything yet just reinvesting 
Can anyone give me some advise please 

Keep_pedalling

Are you saying that they has been no gain in the value of you father’s home in the period of your ownership? 

Did your father ever own it? If he did then IHT is a potential issue even if it was transferred to you over 7 years ago, as is deliberate deprivation of assets in the case of needing residential care.

purdyoaten2

af77 said:

Hi all, 
We have some funds from selling my dads house he is still with us but house was is in mine and my brothers name, we have a company set up to use the money to buy some flats to rent out but due to the morgage rates going up we may just put in a high interest account in the name of the company. The issue is we want to make sure we wont pay capital gains taxs as we havnt gained anything yet just reinvesting 
Can anyone give me some advise please 

There will be a gain for each of you based on: Sale Proceeds less value at time of transfer (if transferred from him, otherwise what you both paid for it) less costs of sale (and purchase) less improvement costs. 

Jeremy535897

Keep_pedalling said:

Are you saying that they has been no gain in the value of you father’s home in the period of your ownership? 

Did your father ever own it? If he did then IHT is a potential issue even if it was transferred to you over 7 years ago, as is deliberate deprivation of assets in the case of needing residential care.

They have to show some intent at the date of transfer. they can't just assume deprivation rules apply. Age Concern does a very good study of the rules.

af77

Keep_pedalling said:

Are you saying that they has been no gain in the value of you father’s home in the period of your ownership? 

Did your father ever own it? If he did then IHT is a potential issue even if it was transferred to you over 7 years ago, as is deliberate deprivation of assets in the case of needing residential care.

He did own it but it was then placed in a trust 

Keep_pedalling

af77 said:

Keep_pedalling said:

Are you saying that they has been no gain in the value of you father’s home in the period of your ownership? 

Did your father ever own it? If he did then IHT is a potential issue even if it was transferred to you over 7 years ago, as is deliberate deprivation of assets in the case of needing residential care.

He did own it but it was then placed in a trust 

So surely that money belongs to the trust not you? The trust will also be subject to CGT on the increase in value between the the value at the time of transfer and the sale price.

The IHT 7 year rule will only apply to the transfer from the date the house was no longer his residential home. In addition if the trust was set up before 6th April 2017 his estate will not be able to claim the RNRB.

sheramber

Surely the money you wish to invest in an account is the gain on selling the property.

Investing it doesn't cancel CGT on the profit when selling.