Capital Gains Tax on only owned home

SiLondon

Hello the Forum,

Hope someone can help.
I bought a house for my mother to live in some twenty years ago as she had no means or income, this being 100 miles from us where she had a network of friends. My mother has never been asked for rent though I cover all the costs of utilities and upkeep.

The mortgage is in my name only and my mother waived any interest as requested by the lender. I have lived in my partner's house (we aren't married but do have a child) for about twenty years but this remains solely in her name. I am on the electoral reg. at my partner's home in order to access GP treatment.

So the house my mother lives in is the only house I own. My question is this - will I be clobbered with CGT on any profit when I sell the house?  
Thanks in advance.

lisyloo

I think the answer is yes as it's not your home.

Are there any reasons why you think you might be exempt?

Hermann

It may be worth exploring whether you can nominate the house as your main residence... https://www.gov.uk/tax-sell-home/nominating-a-home

Not sure if you would meet the criteria, or if you could take action now to then qualify but have a read through.

lisyloo

I don't think nominating it as a home will count retrospectively.

You would also need it to be you home.

Keep_pedalling

Unavoidable I am afraid. 

As you are unmarried with a child both of you need to consider the implications of inheritance and IHT if either of you meet an early demise. If you don’t have wills in place then your child would inherit your estate not your partner and if you have more than £500k in assets then IHT will be an issue. If you do have a will in place leaving everything to each other then IHT kicks in at £325k. 

uptdale

There used to be a relief from CGT for residences lived in by a dependent relative, but it was abolished for residences acquired after 5 April 1988.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65550