I have a customer who paid £17,000 many years ago to fund the purchase of his fathers council house.
About 5 years ago, the house was transferred into customers name as father regarded house as belonging to customer.
Father died about 2 years ago (assume estate under £250,000 and no spouse)and house was was then occupied by customers son.
It has recently been let to an independent person.
Question is whether any capital gains tax would be due if he sold it now, or in the future.
House now worth £120,000.
Trevor Green
Replies (1)
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Yes, of course, since it is presmably not his principal personal residence (you don't mention him ever living in it).
Not sure why father transferred it back to son 5 years ago if his estate was worth less than IHT exempt limit etc etc - hope someone did their sums at those points.
Whatever, what was done was done.
Recommend you or your customer find accountant to get some very basic advice.