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cgt on 2nd home

geozie
Posts: 2
Joined: Tue Feb 13, 2018 7:09 pm

cgt on 2nd home

Postby geozie » Tue Feb 13, 2018 7:22 pm

Hi. Several years ago my father put the family home in my name giving me possession of it for no cost to me. I have since moved out approx. 6 years ago but my father still lives there rent free. If I were to sell the house will I have CGT on the total sale value as the house cost me no money. Many thanks

someone
Posts: 283
Joined: Mon Feb 13, 2017 10:09 am

Re: cgt on 2nd home

Postby someone » Wed Feb 14, 2018 11:14 am

No. On the increase in value since it was given to you.

I don't know why he gave you the house. But you could consider giving it back to him bit by bit each tax year to use up your CGT allowance. That presumes you don't want to sell imminently.

If the gift was to avoid IHT then it probably doesn't work - and you need to take advice before giving it back as it might cause it to be included in the estate twice. (I have no idea how this works, there may be special rules)

geozie
Posts: 2
Joined: Tue Feb 13, 2018 7:09 pm

Re: cgt on 2nd home

Postby geozie » Wed Feb 14, 2018 12:33 pm

Thank you for your answer.

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