They have left the house to me, my brothers agree as i have always lived here and still do.
The question is, will i be liable to tax ? the house is around £150,000 and would it be easier if it was transfered into my name now.....my parents have offered to do so.......
2006-10-03 11:26:41 · 7 answers · asked by pat.rob00 Chef U.K. 6 in Family & Relationships ➔ Family
they have lived in the home 50 years and only paid £6,700 for it.
2006-10-03 11:40:33 · update #1
sell it and pay your sons car off and buy him an astin martin db9
2006-10-04 09:19:05 · answer #1 · answered by jericho sland 4 · 1⤊ 0⤋
I would check this with a tax expert but you probably are better transferring it now. The inheritance tax limit is currently £285k. So if your parents estate on death is worth less than that then no inheritance tax is due.
It is your parents main residence so there will be no Capital Gains Tax on the transfer.
If they die in within the next 7 years a proportion of the gift will count towards the total value of the estate.
I can't see any drawbacks but this kind of tax planning is not my area of expertise.
2006-10-03 11:38:11 · answer #2 · answered by Bob-bob 3 · 1⤊ 0⤋
I think what you require is a deed of covenant they can then give you the house and continue living in it so long as on paper they are giving you rent you should not have to pay tax as long as they continue living for about 6 years but as said see a solicitor many specialise in this matter.£150000 would not attract any capital gains tax though, the inheritance tax threshold at present is 285000 but remember if they do sign it over to you make sure you look after your finances as if you get into debt they might end up loosing their(your) home
http://news.bbc.co.uk/1/hi/business/2966704.stm
2006-10-03 11:35:45 · answer #3 · answered by techno 3 · 1⤊ 0⤋
Yes but present a copy of the will.. that way your taxes will be applied to what ur parents originally purchased the house as.
For example, if ur parents bough the house for 90,000.00 the taxes will be billed to you as that value. If you dont present the will, ur taxes will increase to the new dollar value of your home
2006-10-03 11:29:53 · answer #4 · answered by Photographer 6 · 1⤊ 1⤋
It would be easier now as there would be an inheritance tax, but the yrly property taxes may increase if they put it in your name now. I would ask a lawyer before any changes are made.
2006-10-03 11:29:22 · answer #5 · answered by JC 7 · 1⤊ 0⤋
yes
2006-10-03 11:50:15 · answer #6 · answered by amberharris20022000 7 · 0⤊ 1⤋
you need to ask a lawyer all these questions.....good luck
2006-10-03 20:48:13 · answer #7 · answered by donua1022 4 · 0⤊ 0⤋