Gifted Property

[sunilmanan@hotmail.c]

My father recently passed away and he had a property in joint names with my mother which he rented out. He paid £31000 for it and it is know worth £85,000

If My mother gifted the property to me and I then lived in it what would be the tax implications on my mother? if I then decided to sell it what would be the tax implications on me?

[demetris]

If your mum gifts the property to you there will be capital gains tax on her. Nevertheless certain reliefs apply that bring the gain down, such as taper relief and perhaps indexation allowance. When you sell the property, you will pay the capital gains tax, unless it is your private residence. In this case, it will be exempt.

All the above are only general and it makes sense to obtain proper professional advice before you do anything.

hope this helps.

Demetris Savva BA FCCA
constantinesavva@accamail.com
http://www.tax-accounting-london.info