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Sam, Accountant
Category: Tax
Satisfied Customers: 14200
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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My mother is in her late 70s and lives in her own home in Scotland.

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My mother is in her late 70s and lives in her own home in Scotland. the mortgage is paid up. She wants to transfer ownership of the property to me and my two sisters now, to protect our inheritance in case she needs to go into a care home later in life.
I already own a house in England, which is my main residence. My sisters each own their own properties in Scotland, which they live in. None of us intend to take up residence in my mothers house now or in the future. In the event of my mothers future death and sale of the property, how much:
a. Capital gains tax will be due?
b. Land and Business transaction tax will be due?
Hi Thanks for your question- I am Sam and I am one of the UK tax experts here on Just Answer. First Mum will have to pay you (her children) market value rent to1) Allow this to be treated as a potentially exempt transfer for Inheritance tax purposes and 2) To be treated as not longer her property should care home fees be applied for And you children will then have to declare this rental income to your respective tax offices. Then the capital gain position will be based on the difference in value between the transfer date and the sale date - and this profit (when split 3 ways) can have the costs to sell deducted from it and the costs of any capital improvements made (such as a new kitchen, bathroom etc after the transfer of ownership) then has the first £11,100 tax free as this is the current annual exemption allowance (and may increase in the future) then any gain left over is charged at capital gains rate.The capital gains rate at this time are 18% or 28% or a mix of both, and the percentage charge is based on what basic rate band there is unused against your annual income. Re the Land and Buildings - formerly known as stamp duty - these are the current ratesResidential property transactions - LBTT rates and bandsFor residential property transactions, the rate of tax is determined by reference to percentages of the chargeable consideration for the transaction falling within the bands below:Purchase priceLBTT rateUp to £145,000 0%Above £145,000 to £250,000 2%Above £250,000 to £325,000 5%Above £325,000 to £750,000 10%Over £750,000 12%So is determined by the value Thanks Sam
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