Capital Gains - is my mum liable?
I am currently looking for advice about whether my mum will be liable for Capital Gains Tax or not. She seems to think that she does not need to worry about it, but I have a gut feeling she is wrong and want to see if I really should push her to see a financial advisor.
There is a bit of a backstory, but I will try and make it as brief as possible...
My mum and dad bought a house between 1991 and 1994, for somewhere between £45k and £90. Vague details I know, but mum cannot remember and I am currently looking for any paperwork to get answers.
They raised me and my 2 sisters at this house, until dad suffered a brain hermorrhage in 2005, and another in 2008. The second one hit a lot harder, and he was declared disabled. For a couple of years after that, we all helped care for him at home. It all became too much for 1 sister, who moved out into her own rented place as soon as she could afford it. Dad then became very aggressive towards my mum, so she moved out as well in about 2010.
I was then dads sole carer as my youngest sister was only about 13 at the time. Eventually in 2013 he moved into a nursing home as he needed more care.
Mum ended up buying a house in 2018 with a new partner, but only owns something like 20% as tennants in common. This is her current permanent address.
Dad passed away last year. As they were still married and dad had a will, the little he owned was left to my mum. Mum now owns 100% of the house (not taken towards the nursing home, as he had a dependant still living at the house).
I live in this house with my partner, which still has a £90k mortgage on it. As she cannot remortgage at her age and does not have anywhere near £90k, Mum has offered to gift me the house with the mortgage. Her words, but what she means is that she will gift me the equity and my partner and I will get a mortgage for the remaining £90k. We estimate that the house is currently worth £250k.
Now, from my research, as this is not mums main residence and has not been for many years, she cannot claim relief on it. So using the Gov's own CGT calculator, I estimate that she could owe about £40k (based on the lower original purchase price of £45k). However, she has been told by a "financial advisor" (who I know is really just a know-it-all mate that I dont trust) that she wont have to pay CGT. Of course, she doesnt like the idea of paying £40k, so she is trusting this other guy over me.
I do not want to go ahead and get a mortgage, only for her to get HMRC chasing her after she received bad advice. I believe even if she sold the house (or it gets repossessed), she still would have to pay CGT anyway? Should I be REALLY pushing her to ignore her mates' advice and see a real financial advisor? I am apparently just paranoid
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