Hi to everyone,
I am a new member to this site and would like to ask someone with taxation know how about my predicament.
On the 19/02/1994 the wife and I and her parents signed a declaration of trust whereby her parents, the Nominees, had the council house they were living in transferred to them under the option to buy scheme. The wife and I, the Purchasers, provided £1600 deposit and a mortgage in the Nominees names provided the balance of £13000. In the D of T the Nominees only covenant was to pay £100 per month rent. Our covenants were to repay the mortgage, to keep the property insured at all times and to keep the property in good external repair at all times. I would like to add that the Nominees were paying £260 per month through the council and it may sound corny but we and they entered into this arrangement to save them money as they were both retired on state pensions.
From the above date we have carried out all repairs externally and internally, including rewiring the property, building a porch, installing an alarm, new bathroom suite including new tiling, new internal doors throughout, double glazing throughout including the porch, retiling the kitchen, fit new hot water cylinder. Upon the death of the last parent in February 2013 we instructed a solicitor to deal with the D of T and although we began to renovate the property from the 12/03/13 the Land Registry transfer was completed on 10/09/13 and the value stated as £90,000.
I have receipts for any costs incurred from the 19/02/94 to date of £39,656.17 including mortgage payments.
My questions are, would this be classed as a buy to let as we did not enter in to it this way, would the property be liable to CGT, if so how much?
Many thanks in advance
I am a new member to this site and would like to ask someone with taxation know how about my predicament.
On the 19/02/1994 the wife and I and her parents signed a declaration of trust whereby her parents, the Nominees, had the council house they were living in transferred to them under the option to buy scheme. The wife and I, the Purchasers, provided £1600 deposit and a mortgage in the Nominees names provided the balance of £13000. In the D of T the Nominees only covenant was to pay £100 per month rent. Our covenants were to repay the mortgage, to keep the property insured at all times and to keep the property in good external repair at all times. I would like to add that the Nominees were paying £260 per month through the council and it may sound corny but we and they entered into this arrangement to save them money as they were both retired on state pensions.
From the above date we have carried out all repairs externally and internally, including rewiring the property, building a porch, installing an alarm, new bathroom suite including new tiling, new internal doors throughout, double glazing throughout including the porch, retiling the kitchen, fit new hot water cylinder. Upon the death of the last parent in February 2013 we instructed a solicitor to deal with the D of T and although we began to renovate the property from the 12/03/13 the Land Registry transfer was completed on 10/09/13 and the value stated as £90,000.
I have receipts for any costs incurred from the 19/02/94 to date of £39,656.17 including mortgage payments.
My questions are, would this be classed as a buy to let as we did not enter in to it this way, would the property be liable to CGT, if so how much?
Many thanks in advance
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