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Where Taxpayers and Advisers Meet

Inheritance tax and capital gains on 600k house

Joined:Wed Aug 06, 2008 3:36 pm

Postby ric59 » Thu Apr 06, 2006 4:25 pm

A 70 year old lady has transfered the equity of her 600k property in equal parts to herself her son and daughter in an effort to reduce inheritance tax this was done in feb 2004 at which time the house was valued she continues to live there on her own ,as this is not going to be accepted as a gift by the inland revenue are there any implications in just transfering it back as the situation seems very messy

Joined:Wed Aug 06, 2008 3:14 pm

Postby kirstie.williamson@a » Fri Apr 07, 2006 2:23 am

If the house has risen in value since the transfer then there are CGT implications for the son and daughter if they transfer it back.
Can she afford to start paying them rent for the property ?


Joined:Wed Aug 06, 2008 3:36 pm

Postby ric59 » Fri Apr 07, 2006 4:42 am

not really that would be even more complicated if they transfer it back and then dont sell it for a few years there will be no actual way of konwing the exact price of the property at a given time bearing in mind it was valued quite high in the first place and they could get the same 600,00 valuation as in 2004 today then I presume that as the mother is living there as her only residence she will not have one if it goes up is that correct .

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