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Where Taxpayers and Advisers Meet

Reversing property gift

vik2001
Posts:72
Joined:Sat Nov 17, 2012 2:24 am
Reversing property gift

Postby vik2001 » Mon Feb 24, 2020 11:55 am

Mother gifted part of property to me as joint tenants. We live at the property together.
Im looking to get married and we want to end the arrangement but i want to continue living in the house with mother and wife.
Gift was made in 2016.
If she was to buy her 50% share back would it end the grob? Could i continue to live in the property rent free if she bought my share back?

Is there any sdlt or cgt/poat to worry about? The house is worth 410k

vik2001
Posts:72
Joined:Sat Nov 17, 2012 2:24 am

Re: Reversing property gift

Postby vik2001 » Mon Feb 24, 2020 5:42 pm

I forgot to mention the aim is to out the property back into her sole name with creating any issues for either of us such as grob or poat.
One way i was thinking if she was to buy my share.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Reversing property gift

Postby maths » Tue Feb 25, 2020 12:28 am

The initial gift to you would not have been a GROB if thereafter you each paid your share of the expenses of the house (eg electric etc) or mother paid more than 50% thereof. The gift would still be a PET subject to the 7 year rule.

A sale back to her at market value would not give rise to any tax charges (assume no mortgage). If the initial gift is a GROB then any sale back to mother will terminate it (which will constitute a further PET).

What's value of mother's estate if she owns 100% of the house?

vik2001
Posts:72
Joined:Sat Nov 17, 2012 2:24 am

Re: Reversing property gift

Postby vik2001 » Tue Feb 25, 2020 8:27 am

Hi maths
Mothers estate is:
house full value is 410k. Plus she has 400k in cash. So total is 810k.

So is her buying the share of the property back we own as joint tenants a viable option to end this arrangement? and for us both to come out without anyone incurring grob/poat charges. Also assume i want to continue to live at property.


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