Crosswords1 min ago
Capital Gains Tax
If I sell my old house to my son do I pay capital gains tax and if so can this be avoided by selling for a token amount
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If the house is your only or main home there is no CGT to be paid (private residence relief) if you choose to give the property to your son, but if you remain living there your son will be expected to charge you the normal commercial rent for the property and probably pay tax on the net profit. If however you were to die within 7 years your son may be liable for some inheritance tax. If your son decided not to live in the property but to sell it he may be liable for CGT.
If the property is not your main home and you give it to your son you may be liable for some CGT.
These are important decisions and should be made as part of your overall strategy; I suggest you seek professional advice.
If the property is not your main home and you give it to your son you may be liable for some CGT.
These are important decisions and should be made as part of your overall strategy; I suggest you seek professional advice.
Thank you so much for your help
The property used to be my main home but I was left some money and bought another one
He moved into the house with his partner and their baby
They pay £100 per week for rent and get £75 back as I pay house ins car ins and water rates
I thought if I was to sell it to them for 2/3 of market rate they would have a nice little profit to put towards another house
The property used to be my main home but I was left some money and bought another one
He moved into the house with his partner and their baby
They pay £100 per week for rent and get £75 back as I pay house ins car ins and water rates
I thought if I was to sell it to them for 2/3 of market rate they would have a nice little profit to put towards another house
You are liable for CGT on any increase in the value between the date you moved out (into your new house) and the market value today -less any unused annual CGT allowance you are entitlede to in the year of sale to your son. Note though, that provided you sell the old house within 3 years of moving out, no CGT liability arises.
The rest of TW's answer (regarding IHT liability if you transferred to your son at less than the market value and were to die within 7 years of that transfer) still stands.
The rest of TW's answer (regarding IHT liability if you transferred to your son at less than the market value and were to die within 7 years of that transfer) still stands.
Yes, see the section on 'Absences from your home' half way done the second page of this link.
http://www.hmrc.gov.u...y/sell-own-home.htm#5
http://www.hmrc.gov.u...y/sell-own-home.htm#5
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