Bought for £35000
Sold for £170000
Wife not working
The house was purchased in 1985
It was an ex council house occupied by my parents, I lived there 1952 - 1972.
Bought by my wife an I as our pension fund.
My parents lived there, rent free.
My brother has bought the house and he, his wife and my father now live there.
Thanks.Can you just confirm that you and your wife bought the house in 1985 and your parents lived there for the rest of their lives. How old were each of your pareWhen did the house cease to be occupied by your parents? Was it sold to your brother at the full open marlet value? If not, what was the full open market value?
My wife and I bought the house.
My parents were 64 in 1988.
My parents have always lived there, Mother died May 2015.
Sold to my brother for full market value.
Thanks.Leave this with me while I draft my answer. It will take a while so please bear with me.
Sorry for the delay, we have just become grandparents.
I am confused over the 'dependent relative'.
We bought the house as a pension fund, but it was also agreed that my parents could stay there rent free, so they did not have to go into a home.
My father has been a 'blue badge' holder for over 15 years due to bad back problems (compacted vertebrae and metal rods inserted) and had a leg amputated approximately 7 years ago. He retired over 30 years ago.
My mother was first diagnosed with cancer 6 years ago and as I said died May of this year.
Are these grounds for dependent relatives?
Congratulations on becoming grandparents.Only you can decide if there is a possibility of a valid claim for dependent relative relief based on your parents ages and health at 5 April 1988. Take a look at CG65550, CG65560, CG65570, CG65575 and CG65577. The conditions for a successful claim have to been in place by 5 April 1988.You said earlier that your parents were 64 in 1988 which is unfortunate as being 65 as at 5 April 1988 is a qualifying factor on its own. Choosing not to work between the ages of 55 and 65 is not a qualifying factor but being ubable to work between those ages is.You have until after 5 April 2016 to decide whether to make a claim for DRR via your tax returns or not so there is no rush.