Gifted property from parent

Keep_pedalling

lr1277 said:

I am wondering if your mother would need to pay CGT on the gift portion. Say the house when bought was £500k and it is now worth £1M, that is a £500k increase. Would she have to pay CGT on the whole value of the gift or even CGT on 50% of the property’s increased value? You need to get professional advice or maybe another poster will be able to advise.

Disposal of your primary residence is exempt from CGT. 

sheramber

lr1277 said:

I am wondering if your mother would need to pay CGT on the gift portion. Say the house when bought was £500k and it is now worth £1M, that is a £500k increase. Would she have to pay CGT on the whole value of the gift or even CGT on 50% of the property’s increased value? You need to get professional advice or maybe another poster will be able to advise.

No CGT whan sdisposing of  your own residence.

dcc0311

Mojisola said:

dcc0311 said:

I have recently been discussing with my mother about her signing over 50% of the property she owns without a mortgage. 

-Gift me 50% of property
- both live in the property (we already do currently)
- contribute equally to household bills

I would however like to contribute for this 50%, so our idea was for me to gift monthly money to my mother indefinitely until she passes away.

I would keep the two things completely separate.  Linking them is completely unnecessary and could create complication.

Mother gifts you 50% of the property you both live in.

You offer to pay a higher proportion of the household bills with regular reviews so that the amount can be altered if your circumstances change.

The issue i believe with this is to remove the gift with reserved benefit we have to be seen to be contributing equally. 

I would be treating these separate so tenants in common on the house. Equally contribute to bills. 

Then financially support my mother monthly regularly which is gift, and allowed to support a relative. 

We are seeking official legal advise on this to confirm. 

Mojisola

dcc0311 said:

The issue i believe with this is to remove the gift with reserved benefit we have to be seen to be contributing equally.

If her estate won't be paying inheritance tax, why does this matter?