Hi all, apologies this is a fairly complicated situation and I am in the process of seeking professional advice, however I need some help fairly quickly and thought this was a good place to come!
My dad is going to gift me a property which is currently derelict and in desperate need of repair. I have a builder who is ready to start the work in just over a weeks time, however some last minute conversations yesterday with HMRC have got me in a bit of a spin!
The property has not been signed over yet and I wasn't in any rush to do this as the initial renovations are being paid for in cash. However speaking with HMRC yesterday they advised that the amount of CGT liability would be based on the value at the point of transfer, therefore by carrying out the repairs prior to transfer I would be increasing the liability.
Question 1. Would the repair costs (roof, Windows, doors) be deductible from the gain?
Question 2. Would the gift be eligible for CGT holdover relief due to the value being nil rated for IHT (current value is probably somewhere between 50-100k, once initial repairs are complete 150k)?
Question 3. If eligible for CGT holdover relief then does this reduce my dad's IHT allowance even if he lives longer than the 7 years?
I'm unsure as to whether to hold off the builder until the transfer is completed however doing so potentially means that the repairs won't be started until next year and there will be further damage sustained over the winter.
Thanks in advance, please let me know if you need any more information.
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