Capital gains tax

murray129

About two years ago we bought my parents house ( council house and I paid the mortgage over ten years being honest, otherwise could have taken out a normal loan and paid over 3 years and saved a fortune). About two years ago deeds were put in my name. Now my wife and I are looking to move and as my dad is now on his own we are with his agreement looking at him moving in with us. This will involve a bigger house and we need to sell my dads house to buy a suitable house for us all. I have just found out ! that I will have to pay 40% to the goverment (capital gains tax) on the sale of the house I bought and paid for honestly from my dad. My question is can I transfer the deeds back to my dad and could he sell the house in his own name and come in with myself and my wife to get what we all want.

fengirl_2

However much is the gain over 2 years? Surely it can't be more than £9200?
If you transferrred it back to your dad, you would still have a capital gain. You could however transfer half to your wife without incurring CGT and she would then have her £9200 available to set against the gain.

silvercar

you and your dad are related, so all transactions are valued at market rate AFAIK.

You pay CGT on the difference between the value when you bought it ie 2 years ago and the selling price, less selling costs. After April 5, the CGT will be 18% of the gain, less your CGT allowance and your spouses if you transferred half to her before the sale.