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Where Taxpayers and Advisers Meet

Family Home

sark taxman
Joined:Wed Dec 18, 2013 6:24 pm
Family Home

Postby sark taxman » Wed Jun 16, 2021 11:28 am

About 20 years ago my mother gave me a plot of land and then she built a house on it, in which she continues to live.

For IHT, I assume that the house will form part of her estate as she doesn’t pay rent? If she now pays rent would this succeed in removing it from her estate?
For CGT I assume that the base cost is the land value of 20 years ago?

Joined:Fri May 16, 2014 3:47 pm

Re: Family Home

Postby AGoodman » Thu Jun 17, 2021 2:09 pm

IHT - Yes but it will take 7 years for the reservation of benefit to leave her estate. She may also have some beneficial interest in the property given the money she must have spent on improving it. That's a grey area and really depends on any agreement/understanding between you.

CGT - Yes.

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