CGT On sale of second home.

[schultzy]

Can anybody please advise me as to the best course of action to take in the following scenario.
In 2000 I paid a sum of money to my parents to help them out of financial difficulty. (Below the market value of their property.)
In return their property deeds were transferred jointly into mine and my wifes names. This was all done via a solicitor.
Both my parents remained in the property paying the bills etc. No rent was paid.
Dad passed away 3 years ago. Mum still remains in the property paying the bills etc as above.
I now wish to sell our main residence and the second property valued at £190000 in order to buy a larger one so that mum can live with us due to her poor health.
Having read some of the similar posts I think I know the probable answer but are there any damage limitation options available. Many thanks in advance.

[mullet]

Did you and your wife become the owners of the property in its entirety, or only a proportional share (i.e. if you gave them £50K and it was worth £100K, do you own only 50%?)

What paperwork exists from that time? Did a solicitor deal with the situation?

When the house is sold, do you get only what you originally put in (maybe plus interest), or the whole lot?

[schultzy]

The property was transferred into our names in its entirety as far as I am aware. I don't recall any conditions being imposed.
A solicitor was involved.
As mum is still alive we will only be getting back what we paid in 2000. Mum will be getting the rest. I'm not planning to charge her any interest.

[Peter D]

As you are the owner of the entire property then when sold there will potentially be a CGT liability based of the disposal value minus what you actually paid for it. However if the Solicitor was worth his salt, then he should have drawn up a 'Lifetime in Possession' agreement. If there in nothing in the documentation you have then contact the Solicitor to check this out as this could avoid the CGT issue. Regards Peter

[schultzy]

Aplogies for the delay, but many thanks for the replies. I will be checking the paperwork.