Hi,
I was wondering if a kindly soul could check my thinking and perhaps suggest a better alternative if one still exists....
My brother and sister bought a house in London 25 years ago. The mortgage is now paid off. All 5 siblings have lived in the house at one time or another - it has never been rented out. My sister has no other property but has recently moved out of the house and is likely to buy her own house with her own family.
Option 1
If she sells me her half of the house I will pay SDLT + 3%, as I have my own family home. She pays no CGT as it is her PPR
OR
Option 2
If she gifts it to me, I pay no SDLT right now, but if We were to sell in the future I would effectively be liable for CGT on the whole value of my half of the property. She pays no CGT as it is her PPR.
Am I right?
What is the most tax efficient way to structure ownership of the house so that the amenity is available to all my children and my siblings' children much the same way as it has been available for my own generation.
We do not intend to sell, but what would the implications of sale be, or the implications of mortgaging the property to release some equity?
Thanks for your time - I worry we may have missed the boat in Terms of doing this tax efficiently
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