tax implication

tax implication

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Hi, my parents (both non UK residents) have given me the a 2 bedroom flat, market value of £200K. The deed is still in my dad name and now me and my husband are thinking of selling the flat to buy a bigger house. What is the most tax efficient way to go about it?
lin chuang

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By AnonymousUser
06th Apr 2006 03:34

CGT
Lucky girl lin chuang and congratulations.

I suggest you read Pritchard's Capital Gains Tax book. If you don't find the answer there, then state so here and hopefully readers around shall help you out.

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By AnonymousUser
07th Apr 2006 16:26

The gift has not been ...
...completed if the property is still in your father's name unless he has executed a deed of trust stating that he is holding on your behalf. As he is non-resident he is not liable for UK CGT anyway so the best plan might be for him to sell the property and arrange for the proceeds to be transferred to you. He could be liable to tax in his place of residence but perhaps this is not an issue.

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By AnonymousUser
08th Apr 2006 04:06

What about don't burden the father anymore?
Ken, how about don't burden the father anymore?

Clue - lin chuang is rich enough to afford a bigger house in the UK.

Thus, let lin chuang pay as little CGT as possible without others assistance in the most beneficial way to tax payer.

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By AnonymousUser
08th Apr 2006 09:46

No way.
Pay the lowest tax possible first, so don't transfer to Lin.

If the father wants to gift something to Lin, that's their business, not yours. It's quite common in asian cultures for the parents to make such gifts. It's also common in ours, as it reduces inheritance tax for the elder generation.

I think it makes great sense.

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