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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11132
Experience:  30 years as a practising solicitor.
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My Mother lived in my house rent-free in Scotland

Resolved Question:

My Mother lived in my house rent-free in Scotland wef Oct 2006 when it was legally transferred to my name. That was a legal requirement. It was formerly a council house and she was given the money by me to buy it, at a greatly reduced rate as she was a council tenant of over 30 years. She died in Feb 2013 and the house was sold in Sep 2013. As it was not my normal residence and I expected to pay Capital Gains Tax, I have engaged a tax adviser here in England, where I live. They drafted a letter for me to send to HMRC detailing the facts and the calculations re my costs of improvements and the selling price, thus saying that I had no CGT to pay. HMRC are now saying that the value of the house should be taken as a "tenancy-occupied house" and not at the value of the house as it was in Oct 2006. Is this correct under Scottish Law? I would appreciate a prompt response. Thanks.

Submitted: 3 years ago.
Category: Scots Law
Expert:  JGM replied 3 years ago.
Thank you for your question.

I presume your mother had a liferent in the house which arises from the title. That being the case a liferent is not a tenancy in the normal sense. It is a concept peculiar to Scots law and arises from the title, not from a lease.

In those circumstances I would argue that HMRC are wrong.

I hope this helps. Please leave a positive response so that I am credited for my time.
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