Parents House - Moving in Rules

FlorayG

lr1277 said:

Does the OP become a de facto tenant? In which case the parents need to take on all the responsibilities of a landlord?

My exact thought. OP you will be a tenant and even though you pay nothing your parents will have all the responsibilities of a landlord - however, there's nothing to prevent YOU arranging and paying for gas and electric safety checks and anything else required ( later this year landlords will need to register with a government scheme) also, as it's very unlikely you will have a 'tenant dispute' with your landlords it's less to worry about. When the house is to be sold, YOU give THEM notice to quit so that any potential buyer knows you are actually going to leave as if a landlord gives notice to quit a tenant can refuse to go
So I don't think it will cause any problems as no money is changing hands
Also, there is no gift involved as they are not giving you the property, just 'renting' it to you

FlorayG

user1977 said:

AskAsk said:

i can't see any tax implications at all for this scenario.

The parents would have potential liability for Capital Gains Tax in relation to the period after they move out.

Are you sure? It will still be surely their primary residence?

user1977

FlorayG said:

user1977 said:

AskAsk said:

i can't see any tax implications at all for this scenario.

The parents would have potential liability for Capital Gains Tax in relation to the period after they move out.

Are you sure? It will still be surely their primary residence?

I took from the OP that the move to a care home was permanent. In which case you can't claim to also have a primary residence elsewhere.

Sea_Shell

OP, what is your plan B to move back out, if you haven't had time to save for a deposit on your own place?

What if your circumstances change before then?  You lose your job, become unwell etc

Where you are currently renting, is that at full current market rents, or slightly below (due to being, say, a long-term tenant in your current home)?   How does that compare to what else is available on the rental market?   

silvercar

I didn’t think family moving in and not paying rent constituted a tenancy.

silvercar

If you are over 60 and moved in before your parents move out, the house wouldn’t be considered in assessing parents ability to pay care costs.

Keep_pedalling

FlorayG said:

user1977 said:

AskAsk said:

i can't see any tax implications at all for this scenario.

The parents would have potential liability for Capital Gains Tax in relation to the period after they move out.

Are you sure? It will still be surely their primary residence?

As they have moved out it won’t be, but it is unlikely that CGT will be an issue is they lived there for many years prior to going into care. 

Keep_pedalling

silvercar said:

If you are over 60 and moved in before your parents move out, the house wouldn’t be considered in assessing parents ability to pay care costs.

That would be a contrived situation, the OP is not dependant on their parents and it would seem they have already already moved out.

silvercar

Keep_pedalling said:

silvercar said:

If you are over 60 and moved in before your parents move out, the house wouldn’t be considered in assessing parents ability to pay care costs.

That would be a contrived situation, the OP is not dependant on their parents and it would seem they have already already moved out.

OP doesn't need to be dependent, just needs to be over 60 and to move in and intend to live there permanently.

"5.1 Mandatory disregards If you enter a care home permanently, your interest in your existing ‘main or only’ home is usually taken into account as capital. However, the value should be disregarded from the financial assessment if you no longer occupy the home but it is still occupied, in part or whole, as their main or only home by:

⚫ your spouse, partner, former partner, or civil partner, except where you are estranged
 ⚫ a lone parent who is your estranged or divorced partner
 ⚫ a relative of yours, or member of your family, who is:
     ⚫ aged 60 or over, or
     ⚫ a child of yours aged under 18, or
     ⚫ ‘incapacitated’.

 They must have been occupying the property before you went into the care home. The disregard lasts until the situation changes, at which time it may be included in the financial assessment."

from: https://www.ageuk.org.uk/siteassets/documents/factsheets/fs38_property_and_paying_for_residential_care_fcs.pdf

Keep_pedalling

silvercar said:

Keep_pedalling said:

silvercar said:

If you are over 60 and moved in before your parents move out, the house wouldn’t be considered in assessing parents ability to pay care costs.

That would be a contrived situation, the OP is not dependant on their parents and it would seem they have already already moved out.

OP doesn't need to be dependent, just needs to be over 60 and to move in and intend to live there permanently.

"5.1 Mandatory disregards If you enter a care home permanently, your interest in your existing ‘main or only’ home is usually taken into account as capital. However, the value should be disregarded from the financial assessment if you no longer occupy the home but it is still occupied, in part or whole, as their main or only home by:

⚫ your spouse, partner, former partner, or civil partner, except where you are estranged
 ⚫ a lone parent who is your estranged or divorced partner
 ⚫ a relative of yours, or member of your family, who is:
     ⚫ aged 60 or over, or
     ⚫ a child of yours aged under 18, or
     ⚫ ‘incapacitated’.

 They must have been occupying the property before you went into the care home. The disregard lasts until the situation changes, at which time it may be included in the financial assessment."

from: https://www.ageuk.org.uk/siteassets/documents/factsheets/fs38_property_and_paying_for_residential_care_fcs.pdf

Suggesting someone moved in immediately before the owners move into care just to avoid them paying their care costs is still a contrived situation, and hopefully would not get automatically disregarded.

I am not even sure why you are suggesting it, the OP is not seeking to avoid care costs and seems happy that they remain self funding.