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Where Taxpayers and Advisers Meet
deed of gift
-
heatherview
- Posts:1
- Joined:Wed Aug 06, 2008 3:03 pm
Mt mother made a deed of gift in 1997 of her house. It stipulated that she could live there rent free until she no longer required. She has recently moved into a residential home and I find myself with the house. Do I pay capital gains tax for the last 6 years when she lived in it or from when she went into a permanent home. I am unclear as to how I stand with renting the property also. I understand that a relative living in it makes it exempt form CGT is this correct?
-
Anthony Nixon
- Posts:260
- Joined:Wed Aug 06, 2008 2:18 pm
Assuming the house has not been your main residence since your mother gave it to you you will have no exemption from CGT. You will be fully liable for tax on the whole gain from 1997.
It is not enough just for a member of the family to move in. To obtain the main residence exemption you will need to transfer the house to a trust. If a member of the family then lives in the house as his main home and as a beneficiary of the trust it should be possible to make your gain exempt. The trust can be worded so that the funds come back to you.
This is extremely complex planning and you must obtain good professional advice. If you would like to know how my firm can help please do contact me.
Anthony Nixon ATII
Associate Solicitor
Lester Aldridge Solicitors
Russell House
Oxford Road
BOURNEMOUTH BH8 8EX
Direct Line: + 44 (0)1202 786236
E-mail: anthony.nixon@LA-Law.com
Website: http://www.lesteraldridge.com
It is not enough just for a member of the family to move in. To obtain the main residence exemption you will need to transfer the house to a trust. If a member of the family then lives in the house as his main home and as a beneficiary of the trust it should be possible to make your gain exempt. The trust can be worded so that the funds come back to you.
This is extremely complex planning and you must obtain good professional advice. If you would like to know how my firm can help please do contact me.
Anthony Nixon ATII
Associate Solicitor
Lester Aldridge Solicitors
Russell House
Oxford Road
BOURNEMOUTH BH8 8EX
Direct Line: + 44 (0)1202 786236
E-mail: anthony.nixon@LA-Law.com
Website: http://www.lesteraldridge.com
