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Hi, well, the legal position is that Capital Gains tax (CGT) is payable on any profit he makes on selling the property to your Son as it is not his main residence- even though he is selling it for 50K, he is deemed to sell it at the current market value, and CGT is payable on any increase in value from the date he purchased it, less the standard yearly allowance. For Inheritance tax (IHT) purposes, provided your ex husband survives for 7 years from the date of the Sale, the value of the property will not be counted as being within his Estate for IHT purposes. If he were to die within 7 years, then the value of the property or a sliding percentage of its value would be deemed to be within his Estate. I hope this assists you and sets out the legal position. Kind Regards Al
My ex- is going to say that it is his main residence (he is an accountant) and I think he will probably get away with this since all the bills (such as council tax) are in his name since he pays these on behalf of our son.
So am i correct that he will have no CGT bill if he follows this course?
If he does have to pay do you know the CGT on (market value 750k - 50k). Thanks, Lauren
Hi- if he stipulates that it is his main residence, you don't then have to declare the Sale for CGT purposes. However, if he gets found out, he will be guilty of tax evasion! If I have helped, please don't forget to rate my answer. Kind Regards Al