I will have no interest in the property and will be sole ownership of my son as his main residence.
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As I understand the situation, I may be better to gift this property to my son but would need to wait seven years to be legally his?
I have no interest in this property and have always viewed as his as he has essentially paid the mortgage. I am retired and am no longer a tax payer.
Example figures may be:
Property valued at £210,000
Payback of mortgage and loan to myself £130,000
What would CGT on this be (approx.)?
What would CGT on this be (approx.)
Thank you reply. I currently hav no pension and no income but live off my savings until i receive a private pension one year from now - this will be below tax threshold - being £9000 pa.
.As alternative route, i.e. gifting the whole property to my son as an inheritance. Would the property be legally his and would he be able to remortgage? Also would he be liable tax if I die within 7 years?
My current income is by using saving - there is unsufficient interest to provide an income.
Am I correct in thinking that if I now gift the property to my son - there would be no capital gains tax payable but only the possibility of an inheritance tax bill should i not live out the seven years. And if I did live the seven years - then no tax would be payable?
Thank you. It seems then even if I wish to gift the property to my son, CGT is still payable.
The only other factor I need to consider then is that. When I took out the mortgage on the property (which my son lives in), I advised the solicitor that my son would be living there and would be paying the mortgage. She suggested that I take out a deed of trust to recognise my son's financial contribution to the property.i.e. that some of the gains would be his entitlement based on his contributions. This has not been done but could this be done now and would this further reduce the CGT bill to me as a percentage of the gains would be protected son.
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