house sale tax implications
Discussion
Our house move has fallen through as our buyers have pulled out.
Early ideas, but my father in law may pay off our mortgage and give us the cash deposit required to buy the new place. When we eventually sell our existing house (Circa £194k) we would give him all the money from the sale. So it would effectively be a loan, rather than gift.
can anyone give me an idea of how feasible this is and the tax implications please?
Early ideas, but my father in law may pay off our mortgage and give us the cash deposit required to buy the new place. When we eventually sell our existing house (Circa £194k) we would give him all the money from the sale. So it would effectively be a loan, rather than gift.
can anyone give me an idea of how feasible this is and the tax implications please?
Sorry if this is a bum steer, but it does occur to me that the procedure you're looking at might complicate things as far as getting a mortgage on the 2nd property is concerned. Both the simple fact that you'll own two properties and maybe from an affordability point of view.
I'd check it out first to make sure it's OK.
I'd check it out first to make sure it's OK.
Assuming your current house sells within 18 months, and has previously been your main home, I don't see any tax issue.
Should the sale drag on (and on), there may be a capital gain which is not out by the reliefs available but most likely under your CGT threshold anyway (unless you're using that for other matters).
Should the sale drag on (and on), there may be a capital gain which is not out by the reliefs available but most likely under your CGT threshold anyway (unless you're using that for other matters).
Thanks for the replies! Now looks like we can get enough to pay off mortgage but would be about £60k short on the deposit.
Anyone have any bright ideas how I could get £60k ? I thought about a bridging loan but presumably this would then impact my mortgage affordability?
Nothing illegal though!
Anyone have any bright ideas how I could get £60k ? I thought about a bridging loan but presumably this would then impact my mortgage affordability?
Nothing illegal though!
If you can borrow the money from the FIL borrow it, get it gifted to you and you can then return the cash when you sell your place.
For his safety you can also allow him a charge (as long as it stays unregistered and the bank never know) against the house, that can then be implemented should you fail to repay...how easy it is for him to register it...tax/morality is another issue though, but would get you out of a bind
For his safety you can also allow him a charge (as long as it stays unregistered and the bank never know) against the house, that can then be implemented should you fail to repay...how easy it is for him to register it...tax/morality is another issue though, but would get you out of a bind
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