CGT on part owned inherited property

older_and_no_wiser

uknick said:

b) people incur an unnecessary CGT liability as their parents never go into a care home 

Thanks for the reply. Could you explain what you mean by an "unnecessary" CGT liability please? That sentence seems to suggest that CGT can be avoided/reduced. 

[Deleted User]

older_and_no_wiser said:

uknick said:

b) people incur an unnecessary CGT liability as their parents never go into a care home 

Thanks for the reply. Could you explain what you mean by an "unnecessary" CGT liability please? That sentence seems to suggest that CGT can be avoided/reduced. 

Many take the disastrous decision to transfer parents’ main residence into children’s names, primarily to avoid the house bring sold to pay care homes in the future. 

When the house is sold the children will be liable to CGT on any gain made since the transfer. Had no transfer been made no CGT wound have arisen on the property. 

If the parents still live in the house it will remain part of their estate despite the transfer - a gift with reservation of benefit. 

So the home could potentially be the subject of both CGT and inheritance tax - unnecessarily!