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Sam, Accountant
Category: Tax
Satisfied Customers: 14157
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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My sister is gifting her house to us (the house is financially

Customer Question

Hi, my sister is gifting her house to us (the house is financially ours but hers on paper) and we know we have to pay stamp duty on the outstanding mortgage. What are the tax implications when I sell my flat which has quite a lot of equity and there is also equity in the house we are getting?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi Thanks for your question Have you lived in your flat during the whole period of ownership? Hoe can she gift the property to you if there is a mortgage on it - what will happen with paying back the outstanding debt? I can then advise further Thanks Sam
Customer: replied 2 years ago.

Hi, yes we have always lived in the flat. We are seeking a mortgage offer now to take over the outstanding mortgage on her house.


Expert:  Sam replied 2 years ago.
Hi Carolyn Thanks for your response As the flat has always been your home, and will be sold then there are NO tax implications on this sale, as any gain/equity/profit will be fully covered by the private residence relief. (No exempt from capital gains) Then the gift to you will have no tax implications (but your sister would need to consider whether her gift may trigger any capital gain and an Inheritance tax position) but for you - again no taxation implications, as it is in essence the simple cae of selling one property to purchase another (along with a new mortgage position) Do let me know if I can be of any further assistance Thanks Sam