CGT implications

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    CGT implications

    Hi all

    Its my first post on this forum so hello all- some exellent comments on here.

    My questions is as follows

    My elderly uncle owns a property outright. I gave him the cash for him under the council right to buy to purchase the property in his name. The deeds are in his name. I had a tax/probate solicitor draught up a deed of trust to protect my investment. THe property is in his name.

    Now the 3 yr period under the right to buy terms have expired i am looking to transfer the property into my sole name. The trust document i created allows for this transfer to take place at my request.

    As i provided the cash to ourchase intially no monies are changing hands as part of the transfer of equity.

    I understand the transfer is a PET for iht purposes but my uncles estate is well below the iht threshold so there are no probs there. My queries/concern relate to CGT.

    The house was his main/only residence so i assume there will be no CGT liability for him transferring the property in my name. In addition i assume there is no "IMMEDIATE" CGT issue for me as part of the transfer. I know there will be a CGT laibility if i sell in the future but i'll take advice on that further down the road.

    Any ideas you tax wizards????


    Thanks

    Paul

    #2
    I'm no tax expert but, as the funds were yours all along, I cannot see that your uncle has any beneficial interest at all. He is apparently a bare trustee, so any transfer to you simply vests legal ownership in you as the true (equitable) owner and could never be taxable- not even potentially under IHT, nor under CGT?
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Thanks Jeffrey

      My tax solicitor was also good enough to e mail me today confirming what you said. She agreed there are no iht/cgt implications as part of the trnasfer.

      THanks

      Paul

      Comment

      Latest Activity

      Collapse

      • Sunday Times Report 7 Aug 2022 ( on Welsh holiday lets.)
        by Gordon999
        This report was about a retired solicitor living in Cardiff , with 2 holiday lets in Solva , Pembrokeshire. His properties only let for around 18 weeks a year but Welsh Government require 26 weeks letting to qualify for business rates. The increase in council tax to treble rate compared to rate...
        13-08-2022, 17:22 PM
      • Giving/Gifting House to Kids
        by Tony-Edwards
        Elderly parents in early 80s, one in not so good health.

        Lived in the same home (no mortgage etc) for 50+ years - now worth approx £180,000 - £200,000 and they have minimal savings.

        Looking ahead, if one has to go into care (or council provided home care) I understand there...
        11-08-2022, 11:12 AM
      • Reply to Giving/Gifting House to Kids
        by gnvqsos
        Did the labouring job jeopardise his position at Royal Mail? lt is strange no contingency fund was taken on holiday.. I don't think it makes sense to purchase, and insure/maintain a camper van to save on 7 days accommodation.The typical cost including depreciation exceeds £1500 pa...
        13-08-2022, 14:54 PM
      • Reply to Expense Categories
        by theartfullodger
        The old saw was that you had 3 sets of accounts....
        ​​​​​​- one for yourself
        - 2nd for tax man
        - 3rd for wife/husband/partner
        How does your chosen software handle this?...
        13-08-2022, 12:14 PM
      • Expense Categories
        by philrosenberg
        I'm just in the process of buying my first property as a Ltd company and I have gotten FreeAgent accounting software free with my bank account.

        I have a list of categories to assign to my expenses, but they aren't all that relevant to residential property businesses. I wondered if others...
        13-08-2022, 10:53 AM
      • Reply to Higher rate LTT or not?
        by AddictedMonster
        Thank you very much. I appreciate the information.
        13-08-2022, 12:04 PM
      • Higher rate LTT or not?
        by AddictedMonster
        Hi my partner and I are looking to sell one of our rentals and our residential property and buy a larger property.

        I'm confused whether we will be charged the higher rate land transaction tax due to owning a third property that we own that will not be sold as of yet. It was our previous...
        13-08-2022, 11:26 AM
      • Reply to Expense Categories
        by AndrewDod
        What you record for your own purposes is up to you, but for purposes of tax return, for just one property, and rent < 80K, can just pop it all into "Other expenses" - so long as you can resurrect it when HMRC audits you.

        At least that applies to individual self assessment,...
        13-08-2022, 11:57 AM
      • Reply to Giving/Gifting House to Kids
        by Neelix
        in the eyes of HMRC all this is completely irrelevant...
        13-08-2022, 11:46 AM
      • Reply to Expense Categories
        by Jon66
        Most people I know use an excel spreadsheet.
        13-08-2022, 11:39 AM
      Working...
      X