UK Transfer of property over time from a part gift - tax implications

[Alanio]

My mum bought a property for me to live in while at university which cost 60k, then after a while Added my name to the deeds of the house. After a year has passed she relinquished her name on the deeds and added my brother, a year later I paid my brother 60k to take sole ownership of the house which is now worth 120k. I there any tax implications if I decide to move house, is there a Severn year wait before you can sell part gifts from parents to avoid capital gains tax?

 

[Truemanbrown]

My mum bought a property for me to live in while at university which cost 60k, then after a while Added my name to the deeds of the house. After a year has passed she relinquished her name on the deeds and added my brother, a year later I paid my brother 60k to take sole ownership of the house which is now worth 120k. I there any tax implications if I decide to move house, is there a Severn year wait before you can sell part gifts from parents to avoid capital gains tax?

The Seven Year Rule relates to Inheritance Tax not Capital Gains Tax. If the transfer of the property occurs 7 years before your mother's death then the value will not be included in your mother's estate for Inheritance Tax purposes.

From my understanding of what has been written, there have already been a number of disposals of this property:-

• when you mother transferred a share of the property to you;
• when your mother transferred a share of the property to your brother;
• when your brother sold his share of the property to you.

On each occassion, because you, your mother and your brother are all connected parties, the deemed proceeds on the transfer would be open market value at the point the transfer took place.

I suspect that any gain would be covered by the Annual Capital Gains Tax Exempt Amount but I would be seeking the advice of an accountant if I was you.