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Where Taxpayers and Advisers Meet

Buying House for Inlaws

keithm440
Posts:10
Joined:Wed Aug 06, 2008 3:52 pm
Buying House for Inlaws

Postby keithm440 » Fri Jan 01, 2021 4:12 pm

Hi All
Apologies if the wrong forum - just wanted some advice. In-laws are looking to move and will be putting their house on the market. Now they will need to sell their house to be able to buy a new one so would enter a chain. What would be the tax implications of my wife and I buying a house for them or lending the cash to them for it and them paying us back once they sell theirs ? - basically just trying to help them if they see one they really fall in love with.
I don’t want to try and do a good deed and then end up breaking any rules!
Thank you in advance !

maths
Posts:8200
Joined:Wed Aug 06, 2008 3:25 pm

Re: Buying House for Inlaws

Postby maths » Fri Jan 01, 2021 4:44 pm

Best and easiest option is to lend them the money so they buy the property in their own names and pay you back in due course.

SDLT Geek
Posts:223
Joined:Sun Apr 30, 2017 5:45 pm

Re: Buying House for Inlaws

Postby SDLT Geek » Fri Jan 01, 2021 5:31 pm

Good advice from maths. The in-laws are likely to have to pay the extra 3% SDLT (assuming they are buying in England) if they buy their new home before they sell their old one. But the extra 3% should be recoverable when the sell their old one, within three years.

keithm440
Posts:10
Joined:Wed Aug 06, 2008 3:52 pm

Re: Buying House for Inlaws

Postby keithm440 » Fri Jan 01, 2021 7:32 pm

Thanks both, really appreciate it - so I don’t expose either parties tax wise if we lend them the money and they then pay us back once it’s sold ?

maths
Posts:8200
Joined:Wed Aug 06, 2008 3:25 pm

Re: Buying House for Inlaws

Postby maths » Sat Jan 02, 2021 5:00 pm

Correct.


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