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Inheritance Tax / CGT

Hello all
I would really appreciate some advice on the above.
In short my wifes mum has pledged to give a property to wife as a gift. My Mum in law lives abroad and is not a british national. She had bought the property at 95,000 a in the late 90's , its valued at around 130,000 at the moment. The house is still under my mum in law's name. We nor my mum in law lives there. It was renred out for a while but now its empty going refurbshishment. We intend to sell the house after its done up.

Whats the best way to reduce or avoid any tax. Do we sell it when its still under my mum in laws name and she gives us the cash? or do we transfer it my wifes name and then sell it? I am self employed and my wife is a home maker. We currently live in a rented house in a different town. Any advice is mucch appreciated.
Thanks

Comments

  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    As your m-i-l is not resident in the UK, she is not liable to CGT or IHT (when she dies). It would therefore be better for her to sell it and give you the cash on which you would not have to pay tax.
    £705,000 raised by client groups in the past 18 mths :beer:
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