my mother bought her house from the council using me to get a mortgage ( i have my own home) there is a £30000 mortgage on it and it is probable valued at £150000 now. If and when i decide to sell do i have to pay capital gains tax.
2007-01-09 00:18:03 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If someone is living in the house you wont pay a penny in tax. However, if you sell the house and its empty you will be expected to pay tax, but dont declare it. I sold a flat that was being rented then did it up and sold it, didnt declare it, they wont find out so dont worry. Or say you were living there and doing the place up, thats what I intended to say if ever asked!
2007-01-09 00:26:56 · answer #1 · answered by Annie M 6 · 0⤊ 0⤋
You would owe capital tax at 15% on the 100,000 gain when you sell it regardless of when she passes away. A much better plan is for her to keep the title in her name and just add you as the beneficiary at her death. This is called Transfer On Death or TOD. That way you still get the stepped up cost basis to her death value to compute your gain which would be zero if you sold it soon after death.
2016-05-22 22:29:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes,it would count as a buy to let,but you may be able to get around that by selling your own house and then living in your"mother,s house ". This would then become your sole residence and would not therefore be subject to capital gains.To be safe though I'd check with your solicitor first! Good Luck.
2007-01-09 00:29:47 · answer #3 · answered by grumpyoldman 4 · 0⤊ 0⤋
Yes, as you are only exempt from capital gains tax if it is your main residence you are selling
2007-01-09 00:25:07 · answer #4 · answered by Dogs'r'us 4 · 0⤊ 0⤋
Similar Question was dealt with in last weekends Sunday Times. Go vist their site.
2007-01-09 00:42:46 · answer #5 · answered by Steve B 7 · 0⤊ 0⤋
No because it'll probably be under the CGT Threshold!
2007-01-09 00:25:56 · answer #6 · answered by voodoobluesman 5 · 0⤊ 0⤋
Yes is the short answer.
2007-01-09 00:21:41 · answer #7 · answered by Anonymous · 0⤊ 0⤋
yep, deffo
2007-01-09 00:25:48 · answer #8 · answered by Not Ecky Boy 6 · 0⤊ 0⤋