My mother has sold her bungalow some months ago we are now going to purchase a new bungalow there is no mortgage on the property and her son already owns another property with his wife
The question is what is the best way of gifting her son the property? Is it best for her son to buy the new property and pay the 3% stamp duty the bungalow is worth 200 K.
Would there be any future tax implications on this for her son? Or the other option is for the mum to buy the property and give her son the property or leave in her will?
does anyone have any ideas as to what The best options are in this scenario?
Replies (8)
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The answer is ... it depends.
There are a whole load of considerations here that go well beyond the scope of this forum - where you won't get a clear answer.
Who is "we" if you are a child and you refer to her son as "her son" and not "my brother?"
Quite frankly if your mother has enough assets to have an IHT problem based on the facts above she has £500 to take proper advice.
The most obvious solution will save you £6k in SDLT.
okay thanks so far if I take this example then if I'm willing to pay the 3% tax and put the property into my name i.e. the sons name will there be any future tax implications for me owning a second property?
Yes.
Yes, potential CGT on any subsequent sale.
Also , will mother continue to live in the property?
What is the motive re the proposed disposal of either the new house itself or the funds to acquire the new house at this stage?
A lot of questions arise- this is why taking paid for tax and legal advice is very advisable
Are you the daughter, Thelma?
As others have said and, it's becoming a regular theme on Aweb, individuals really do need to heed the advice of seeking professional and, being prepared to pay for detailed advice, which takes account of the individuals circumstances.
Without being rude, or disrespectful, the true intention of Aweb is for fellow professionals and members to be able to interchange professional views and opinions.
Regretfully and, in the last year or so, Aweb has taken on the look of the Honda Civic Type R, or BMW problem forum.
I agree. Generic webchat is no substitute for a face-to-face meeting. Anyone in this profession will have seen situations like Thelma's (and his mother's) a thousand times; but each one is different. You have to have personal advice.
On this particular occasion, I would suggest that the client should be the mother and the advisor should be a solicitor. Thelma can pay - if he can afford to waste £6k on SDLT, he can afford to pay for his mum to get a good solicitor. In the end, he'll be grateful he did.