How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Aston Lawyer Your Own Question

Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10412
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
16368554
Type Your Law Question Here...
Aston Lawyer is online now

My parents in law have gifted their main residence and

Resolved Question:

My parents in law have gifted their main residence and anothe property to their three children but now want their main residence back. It was valued at £380k at the time of the transfer and have gone up to about £430k over the three years. They have been paying rent albeit not at what could be considered full market rent.
If we gave it back, are we, or they liable to any capital gains tax?
Submitted: 8 months ago.
Category: Law
Expert:  Aston Lawyer replied 8 months ago.

Hi, if the 3 children do transfer the property back, for Capital Gains tax (CGT) purposes, they are deemed to be "selling it at its current market value". Therefore, as they acquired the property for £380K, a profit of £50,000 has been made. Divide that by 3, leaves each of them with a gain of just under £17,000. Each of them has an annual allowance for CGT of £11,100 and if they have not used last financial year's annual allowance also of £11,100, there would be no CGT for them to pay (as they have a total allowance of £22,200). I hope this assists and answers our question. Kind Regards Al

Customer: replied 8 months ago.
we could just give it back, the tax man wouldn't expect to see the £50k payment from the in-laws?
What would be the process to hand it back, is it just land registry forms?
Also, I need to show this to all parties, what are your credentials so I can demonstrate that this is sound legal advice please.
Expert:  Aston Lawyer replied 8 months ago.

Hi, provided they haven't used this year's and last year's CGT annual allowances, no tax is payable. The Transfer back to parents would have to b done by way of the Land Registry Transfer document, called a TR1. You are best to ask a local Solicitor to prepare it, all parties sign it, and it then gets lodged at the Land Registry, who will change the Deeds back into parents names. I am a Conveyancing Solicitor, based in Staffordshire and have been practising for 21 years. Hope this helps. Kind Regards Al

Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10412
Experience: Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
Aston Lawyer and other Law Specialists are ready to help you
Customer: replied 8 months ago.
I just tried to validate your advice and cannot find anywhere on the government we site where it says you can carry forward a previous year's CGT? Can you tell me where this is defined?

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.co.uk/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.co.uk/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.co.uk/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.co.uk/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.co.uk/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.co.uk/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.co.uk/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice