If somebody gives me a house...


T

Theodore Pike

Not an inheritance but a gift. What exactly are the tax
implications for me? CGT if I sell it? What if I don't but just live
in it?
 
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C

Clive.lister

The person giving the "gift" must live for 7 years and must not continue tolive there. It must be an outright gift with no retained interest. Also, there is something about being preowned by a member of your family....no doubt someone will come along and elucidate on that Point.
If there is no second home for you, if you sell it and it is your only or "primary" residence then no capital gains tax will be payable by you.
The capital taxes office will need to be aware of the fact that the gift ifit is above a value threshold. I can't remember what that value is but youshould find it somewhere here;
http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm
 
T

tim.....

The person giving the "gift" must live for 7 years and
Not (usually) the recipients problem.

IHT is paid by the estate on death and PETs are not clawed back (pro rata)
to pay any tax unless the residual estate isn't large enough to pay the
total due (and no I don't know what the process is in that case)
must not continue to live there. It must be an outright gift with no
retained interest. Also, there is something about being preowned by a
member of your family....no doubt someone will come along and elucidate on
that Point.
Only a problem if the giver continues to live there, so covered by the
earlier points

tim
 
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R

RobertL

Not an inheritance but a gift. What exactly are the tax
implications for me? CGT if I sell it? What if I don't but just live
in it?
If the giver continues to live in the house you can find that although the gift takes effect for CGT, it does not take effect for inheritance tax. You can then get the worst of both worlds paying both IHT when the giver dies plus CGT when the house is sold.

Robert
 

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