Buying House from Dad

LynnB_2

Hello - wonder if anyone can give me some advice please?

My dad owns his property (no mortgage). He is getting near to retirement age and I was considering if it would be a good idea for me to buy the house from him so that he then has the cash, but for him to then live in the house as my tenant.

My question is - he is not currently working and is receiving pension credit. If he sold the house would this affect his beneift and if so, could he put the cash in someone elses account - say my brothers - as a gift and would this attract any kind of tax?

Would also appreciate any other information/advice on this matter if you have it!

Many thanks.

margaretclare

Yes, if he sold his house he would have too much capital to get pension credit.

If he sells his house to you what's he going to do about paying you rent? If he tries to 'hide' the amount he gains by selling his house then he's committing fraud and the Revenue will take a very dim view.

I just found out another interesting piece of information. Apparently anyone who is thinking of selling or giving a share of their home to a family member falls under a new tax called the Pre-Owned Asset Tax. This targets homeowners who sell/give their home but continue to live in it. The obvious reason for the introduction of this new tax is that it's seen as a scam. I leave it to you to decide whether your and your dad's motives are totally pure as driven snow.

Aunty Margaret

LynnB_2

Thanks for your reply. I certainly do not intend to commit fraud or a scam - hence the reason I was asking for advice on the matter! Thanks for the info on the new tax!