Capital Gains Tax

catbaloo

My mum owns her house outright. My step Father died last year and since his death she found it hard to deal with memories and also she found it hard to deal with stairs etc. due to ill health. She applied for a council warden controlled bungalow and on medical grounds she was successful. My partner and I relocated to the area so that we could be close to her and help with day to day things, shopping cleaning and generally anything else she may need, we moved into her home and she moved into her bungalow. I am the sole beneficiary in her will, but she has expressed a desire to gift the house to me now. She wants to see us secure and settled while she's still around. Does anyone know where she would stand as regards capital gains tax?..

CLAPTON

as she previously lived in the house she can sell/gift it within three years before CG tax becomes chargeable.

however, if she claims state support to live in the bungalow or needs to live in a home, the council will consider that she has deliberately deprived herself of assetts

catbaloo

Thanks CLAPTON. I've tried all over the net to find out the different rules on this matter, but it was all so confusing, I didn't want to agree to her wishes and land her with a huge bill. Thanks again for your help. Much appreciated....