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Where Taxpayers and Advisers Meet

Handing property over to Parent

GC123456GC
Posts:1
Joined:Fri Jul 30, 2021 9:24 am
Handing property over to Parent

Postby GC123456GC » Fri Jul 30, 2021 9:33 am

Hi

I am after some advice. In 2004 my mother gave me £80000 as she had sold her house and wanted me to invest. I didn’t really want the money as I always felt she would need it back. I bought a house which is now worth £280000 with a £60000 mortgage on it. BTL mortgage.

Due to a breakdown in a relationship and illness she ended up moving into this house and has contributed to the upkeep maintenance and so on and I told her I would give it to her.

I deeply care for her and want what’s best but also don’t want to hand it back and me be left with a big tax bill.

She is now wanting to pay the rest of the mortgage off and have the house put in her name.

Is this possible what is the best way to do this it’s causing me a lot of worry as I want things doing correctly but don’t want a big bill which from reading I think I’m going to get.

Thanks

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Handing property over to Parent

Postby pawncob » Wed Aug 04, 2021 11:45 am

If you gift her the house, you'll pay CGT on the gain to Market Value (£280k less cost) and you'll be adding to her (potential) IHT liability. Outstanding mortgage could reduce the value of the transfer if she takes on that liability.
With a pinch of salt take what I say, but don't exceed your RDA


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