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Q&A » Buying and selling property
my mother currently lives in the house and is entitled to one third of it from her divorce settlement. My fathers name is on the deeds,and he wants to sign the house over to us. What we would like to happen is to sell the house and buy my mother a new house and put it in our 3 joint names. Would we be liable to pay any tax on this? the house is approximately valued at £160,000.
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878There is no point in his transferring his portion and for the whole then to be sold. It would be cheaper and simpler to sell first.
So far as ownership of the new property is concerned, if you did as you suggest, when she eventually wants to leave and sell it, or dies, leaving it to the 2 children, and you then sell it, you would then be liable for Capital Gains Tax on your 2 portions. But you would each have an exemption for the first £10,600. She would be exempt on all her portion as she was the owner/occupier.
However, only her portion would count as her asset for the purposes of council nursing home fee calculations.
If you put the whole of the new house in her name, there would be no Capital Gains Tax liability on any of you, but the whole house would count for those nursing home calculations.
Mike
Posted on 07 October 2012 |
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