Thanks for your question - I am Sam and I am one of the Uk tax experts here on just Answer.
Can you advsie
1) When did you purchase the property
2) When did it first cease to be your main residence so you could become a live in carer
3) Did you then rent the property out - or leave it empty so you could move back in when your were between jobs
4) Will you, your niece and your sister all live here when you retire
5) Will you pay her rental income to remain living there
Thanks for the update
It is open as you have just added this response to it ? But after so many days if there has been no activity on a question then you are sent notifications automatically by Just Answer.
Do you now have the information asked for ?
I have requested that your duplicate question be closed and if you wish a telephone call then I will have to send you an additional services request, which I am afraid then incurs an additional fee- would you like me to activate this telephone call ( I cannot call you directly its all managed through just Answer)
My answers in respect to the questions Sam put to me below.(1). I purchased the property 30/1/2001. Prior to that I lived there for two years as a joint owner with Ms Mari Hirano.(2) and (3) I ceased living there and rented it out 25/5/2006(4). In the future, I plan to be looking after my mother with Alzheimer's in her house.(5). And will not be paying rent to my niece.Debbie TanPS please call me on***********- thank you Sam
You need to use the original thread please
So do you wish a phone call as I have sent a request from this thread?
We are still using your original thread for this topic - I have just asked for your new post to be closed - we will continue on this thread if thats acceptable and you will also then have been charged for this question and the subscription
So can you advsie the following
Did you live in as a carer from 25/05/2006 until now (as your retirement looms)
Do you plan to live at all in this property with your niece as you now advise you will go and live with your mother
Will you spend any time at all living there in the future or will you view this then as Ruths home
I have replied and I need more information
I am sorry but this is not helping me advsie you
You advised that you ceased living at this specific property from 25/05/2006 so you live din Newham from then until 2008 when you ceased being a driving instructor
Who lived in the property from 2006 to 2008
Where were you from 2008 to 2012 when you started being a live in carer
Did you rent the property out to tenants at all - if so did you declare rental income to HMRC
Are you now at this property as its a gap between your break working as a carer which started in 2012
When are you due to retire
When will you go and live with Mum
Where does your niece live now ?
If you do not transfer the property into her name - will she pay all the bills
If you do transfer the property into her name - will you continue to make sue of it?
When will you move in with your mother
Could you answer all the questions please - I am trying to establish your tax position with this property
Then if you gift the property to Ruth you will have capital gains tax to pay as this has ceased to be your home for various periods of time and also note that if you gift this property to Ruth you cannot then make use of it - you can say occasionally (say 2- 3 weeks a year) but anything more will then negate the Inheritance tax position.
This would mean instead of it being disregarded for Inheritance tax after 7 years (potentially exempt transfer) , it would treated as a gift with reservation of benefit - so still be included as part of your estate
The capital gain position would arise as its been more than 4 years since this has been your main residence (which is the maximum for working away) and you had time from 2006 to 2008 and 2012 to date and then you have times in between jobs when you have not returned to the property as you let it out - so whilst you will be entitled to tax reliefs (private residence relief and private lettings relief (as you declared rents to HMRC) you will have I suspect some tax to pay even though you will just be gifting the property - and not selling it ..
It maybe that the best way forward is to just bequeath the property to Ruth through your will, because if the value of this property and all your other assets are less than £325,000 then you will have NIL Inheritance tax to pay anyway.
But do take that advsie from solicitors, as I am sure you can appreciate we are UK tax experts and not legal experts ! Let em know if I can assist further, but if you have ll you need, it would be appreciated if you could rate me for the level of service I have provided (or click accept)
I hope that helps you