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Where Taxpayers and Advisers Meet

cgt on 2nd home,

Matt
Posts:4
Joined:Wed Aug 06, 2008 3:02 pm

Postby Matt » Thu Feb 20, 2003 12:00 am

Hi, My father is about to transfer his 2nd home in my name. My intention is then to sell it.

How can i reduce my tax if any...?

Thanks

Ian McTernan CTA
Posts:1232
Joined:Wed Aug 06, 2008 3:02 pm
Location:Bedford
Contact:

Postby Ian McTernan CTA » Sat Feb 22, 2003 12:00 am

Two potential taxes to look at- IHT and CGT. For Inheritance Tax purposes, the gift is a potentially exempt transfer and provided your father survives for seven years then no IHT is payable.

For capital gains tax purposes, the gift is between connected parties and hence a hold-over election for the gain may be in point. However, unless there is a potential tax saving in you selling the property rather than your father, why incur two sets of legal fees and have the father sell the property and gift the proceeds to you?

If you wish to discuss further, on a fee paying basis, please contact me as below.

Regards.

Ian McTernan CTA
McTernan Associates Ltd
tel. 020 7629 3119
fax. 020 7355 1778
email: ian@imcternan.com
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com


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