Another Capital Gains Tax question....

[Piglet]

I'm sure this one was done recently but I can't find what I think I read previously, so sorry for being repetitive!

If I were to buy a property for less than the market value, live in the house and it would genuinely be my main (and only) residence for the foreseeable future. Do I remember that there is no Capital Gains liability as it's my main residence?

BTW, there is no swindling of inheritance tax, care costs or anything similar involved, it's just a family transaction that avoids a big number mortgage and some other difficulties.

[Eric Mc]

You're OK from a CGT point of view.

What about those who are selling it to you?

[Piglet]

Eric Mc said:

What about those who are selling it to you?

Thanks Eric. The person who might be selling is my father and it has always been is only residence. Does that put him in the clear?

[Eric Mc]

The question is about CGT.

As the house is the father's main residence and it will become piglet's main residence, CGT will not apply - UNLESS AT SOME POINT IN THE FUTURE IT STOPS BEING PIGLET'S MAIN RESIDENCE.

Inheitance Tax could be an issue - if the house and piglet's dad's estate is above the IHT thresholds.

[Piglet]

Thanks guys, I've got a handle on the other issues and IHT isn't a problem on the current thresholds.