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Where Taxpayers and Advisers Meet

Co owned property sold

ann aldridge
Posts: 1
Joined: Wed Aug 06, 2008 3:33 pm

Postby ann aldridge » Sat Jan 21, 2006 12:44 pm

Four years ago My father signed over his house to myself and 2 sibling with my father retaining a 1/4 share. The property deeds were changed to show this. My father is now in a nursing home and the property is being sold. Upon the sale I will receive a quarter share of the proceeds. If my father dies within 7 years, will I be liable for CGT on my share ?

sandy2000
Posts: 38
Joined: Wed Aug 06, 2008 3:33 pm

Postby sandy2000 » Sat Jan 21, 2006 5:33 pm

Ann

My understanding is that signing over the house like that to children (or part of it) is a potentially exempt transfer. God forbid if father dies before 7 yrs there is IHT payable on a sliding scale not CGT - as the assset will be revalued at the time of death.
But in your case since the house is being sold while he is alive it will no longer be part of his estate if he passes away anyrime after the sale.
CGT will be payable by u on the sale, subject to yr allowances. and also whether you can qualify for residence status, depending on whether you have another main home or not.

I am not an expert - but this is the gist of what i as advised by someone who seemed to know about the subject.

King_Maker
Posts: 6538
Joined: Wed Aug 06, 2008 3:22 pm

Postby King_Maker » Sun Jan 22, 2006 1:41 am

The short answer is you could have a CGT liability NOW (when the house is sold).

The 7 Year exemption refers to IHT, and is nothing to do with CGT.


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