Second home CGT I let my mother live in it, do I have to pay cgt when I sell?

[doyleyboy7]

Hi, I bought my mothers ex council house in 1988 and I lived in it up until 1992, then I go married and lived in rented navy houses until 2004 when I bought another house, which me and my wife live in. I charge my mother rent (she claims this back in benefit)but this only just covers the mortgage payment. If I sell the house do I have to pay CGT? The house was originally bought for £28,000 and I know have a mortgage on it for £90,000 as I have done it completely up and also given my mother money because she let me buy the house in the first place. I am only keeping it so she has somewhere to live. I have two resedential mortages, although the ex council house was set up as a let to buy. I would really like some advice on this please?

regards Jon

[Simon Sweetman]

Yes, if and when you sell the house where your mother lives you will pay CGT, though you will get some relief because you lived in it for four years at the start : the rules get complicated and for any more advice you would need a current value for the house.

simon.sweetman@btinternet.com