Blooming Personalities C/D 30Th November
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my son wants to purchase a holiday home for us to use in the uk, for as long, as we are able to manage to be to live independently ,can any one tell me how this works and are there any tax or other financial issues we would continue to rertain our main residence thanks for any advce any one might offer
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Perhaps somebody else with more tax knowledge will post on here, but if the home is in your son's name, it will be owned by him and if he sells it he will have to pay Capital Gains tax on any profits made when it's sold, although he will be able to deduct his annual capital gains allowance from the selling price before paying tax on it. If you use it as a holiday home and pay him any rent for whatever time you use it, then he will have to pay tax on that as part of his income.
If you son puts the holiday home in your name, then legally it will become your property, and unless you nominate it as your prime residence, YOU will be responsible for paying capital gains tax on it when it is sold. If the property is not in your name, then you have no financial responsibility for it. If the holiday property is in both your names, it will be jointly owned, i.e. between two (or possibly three of you) and you will all be responsible for capital gains tax in the proportion of your share of the property.
Whoever owns it will also have to pay Council Tax. At there moment a holiday home is usually subject to a 10% discount depending on the ruling of the local council within whose boundaries it is located, but that discount may well disappear. The owner of the holiday property, on paying Council Tax, will also get the right to vote on elections in that constituency, but if they vote there, it is illegal for them also to use their vote in their own constituency.
From your questions it sounds as if you may not currently be living in the UK, so you would need to clarify this if the holiday property was put in your name as obviously it then be your property and you could well be liable for taxes. If you're living abroad and coming to the UK for holidays, if your son owns the property and pays all the expenses on it, I can't see that you would be liable for any financial penalties.
If you son puts the holiday home in your name, then legally it will become your property, and unless you nominate it as your prime residence, YOU will be responsible for paying capital gains tax on it when it is sold. If the property is not in your name, then you have no financial responsibility for it. If the holiday property is in both your names, it will be jointly owned, i.e. between two (or possibly three of you) and you will all be responsible for capital gains tax in the proportion of your share of the property.
Whoever owns it will also have to pay Council Tax. At there moment a holiday home is usually subject to a 10% discount depending on the ruling of the local council within whose boundaries it is located, but that discount may well disappear. The owner of the holiday property, on paying Council Tax, will also get the right to vote on elections in that constituency, but if they vote there, it is illegal for them also to use their vote in their own constituency.
From your questions it sounds as if you may not currently be living in the UK, so you would need to clarify this if the holiday property was put in your name as obviously it then be your property and you could well be liable for taxes. If you're living abroad and coming to the UK for holidays, if your son owns the property and pays all the expenses on it, I can't see that you would be liable for any financial penalties.
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