gift of joint tenancy / IHT/CGT implications

[davedee]

In August 1998 my father bought a house for £99,000 and made me (his daughter) a joint tenant, simply to make the procedure on purchase and his death easier. I have never lived in the house and have a PPR nearby. The house is now worth £200,00. Am I liable to CGT on the gain should he die, as well as the estate being liable to IHT?

[maths]

Basically you each own 50% of the house.

On his death you will inherit his 50% by way of survivorship not under his will.At that time no cgt will be payable by either of you.

Should you subsequently sell the house then in principle you will be liable to cgt.

If his total estate is below £275,000 then no iht will be payable on death.

In hindsight it might have been better for your father to have owned all the house leaving it to you in his will. You would then inherit at its mkt value at his eath and could have sold soon after basically cgt free; hindsight is of course a wonderful thing!!

[davedee]

Thank you for such a prompt reply. Is the CGT that I would be liable to based on the purchase price in 1998 or the valuation for the estate. Thanks again.