Any Capital Gains experts on here please ? CGT ADVICE
Discussion
There used to be a Dependant Relative act which said that if a dependant relative lived in a 2nd property owned by a family member before 1988 there would be no capital Cain payable on the eventual sale of the property . This has since been scraped we believe .
The scenario is . Family wish to sell a house with dependent relative who has lived there for about 23 years rent free and to rehouse relative . The CGT payable at present taking into account the owners tax allowances is about £200k .
They will not see any monetary gain as they will use the remainder of the proceeds to house said relative again and will place the next property in her name , so basically just paying the CGT and giving the remains away . After 23 years the relative is I guess a sitting Tennant.
Would the house be better being valued with a sitting tenant who won't move or can't go anywhere and has nothing/no assets etc and has also been very ill with life threatening illness/depression can't work and then the is ownership transferred to her at the lower value with her as a sitting tenant and what little if any CGT paid by owners ? She can then sell and move if she wishes?
The family have looked on line and in books regarding CGT and even spoken to an accountant but this is a very unusual case and can't see any examples whereby the owners will benefit nothing by selling and gifting the next property with the sale proceeds and also the fact the property has being occupied for 23 years by a dependant relative .
£200k CGT is a huge amount of money to pay to rehome somebody in need .
I'm just wondering if there are any wizz kid tax specialists reading this who know of any legal tax saving loopholes or ideas regarding this situation please?
No disrespects to accountants but we are sure this needs someone who thinks outside the box a bit and the accountant they spoke to didn't seem to clued up to be honest taking into account this scenario .
Your input would be very much appreciated .
Thank you
The scenario is . Family wish to sell a house with dependent relative who has lived there for about 23 years rent free and to rehouse relative . The CGT payable at present taking into account the owners tax allowances is about £200k .
They will not see any monetary gain as they will use the remainder of the proceeds to house said relative again and will place the next property in her name , so basically just paying the CGT and giving the remains away . After 23 years the relative is I guess a sitting Tennant.
Would the house be better being valued with a sitting tenant who won't move or can't go anywhere and has nothing/no assets etc and has also been very ill with life threatening illness/depression can't work and then the is ownership transferred to her at the lower value with her as a sitting tenant and what little if any CGT paid by owners ? She can then sell and move if she wishes?
The family have looked on line and in books regarding CGT and even spoken to an accountant but this is a very unusual case and can't see any examples whereby the owners will benefit nothing by selling and gifting the next property with the sale proceeds and also the fact the property has being occupied for 23 years by a dependant relative .
£200k CGT is a huge amount of money to pay to rehome somebody in need .
I'm just wondering if there are any wizz kid tax specialists reading this who know of any legal tax saving loopholes or ideas regarding this situation please?
No disrespects to accountants but we are sure this needs someone who thinks outside the box a bit and the accountant they spoke to didn't seem to clued up to be honest taking into account this scenario .
Your input would be very much appreciated .
Thank you
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