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PPR relief for dependent relative my mother

Bought house in Mar 1982 and bought another house in Mar 1999 but my mother was living till Sep 2008

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We bought the house in March 1982 (Owned by my father,myself and my wife) house was ocuupied by my family (My father, mother,my wife, my sister,my niece,my daughter and my son)

In 1988 my wife's share was transferred to my sister (Owner were now - My father,my sister and myself)

On 5th March 1995 my father passed away and his share was equally transferred to me and my sister

In September 1999 (My self and my wife bought another house and myself ,my wife ,my daughter and my son moved in the new house)

My mother and my sister continued living in the original house and I was paying for Mortgage ,council tax and other house expenses as my mother was living in that house

In Mar/April 2003 - my sister 's share was transferred to my son but my mother and my sister were still living the house and occassional my son will stay there

On 27th September 2008 my mother passed away and after 2 to 3 weeks my sister moved with us in our house

Sometime in January 2009 we let this house 

All cost were paid by me and my wife

On 9th August 2020 we transferred the this original into Family Trust

Please let me know how I can calculate PPR Relief as my family were living in the house till my mother passed away on 7th September 2008

Technically my acquisition date 27th September 2008 and sale date as 9th August 2020

 

 

Replies (13)

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Scooby
By gainsborough
17th Jan 2022 16:41

OP, given this isn't a straightforward question, you need to consult an accountant as soon as possible. If there is a taxable gain, this also should have been reported (and any CGT due paid) within 30 days of the completion date as sale occurred before 27th October 2021.

Thanks (1)
By williams lester accountants
17th Jan 2022 17:41

With possibly a significant amount of tax at stake, why do people come on this forum for free advice from random strangers?? It is beyond my comprehension why you would not get advice which can be relied upon for such an important matter.....

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RLI
By lionofludesch
17th Jan 2022 17:47

Agree that this is far too complex for this forum.

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By Hugo Fair
17th Jan 2022 18:57

Sorry but, as well as being a convoluted saga (with some details missing), you appear to be making some basic errors of understanding:
* "On 27th September 2008 my mother passed away"
But your mother was never even a part-owner of the house (so this is irrelevant to either IHT at this time or to CGT when the house was later sold).
* "PPR Relief as my family were living in the house till my mother passed away on 7th September 2008"
PPR relates to potential relief from CGT for the owner based on her/him residing there, not whether someone else in the family was doing so.
[I say 'you appear to be' because what you're saying is not always clear within OP.]

But sitting down with a retained accountant should help arrive at the full story ... upon which it will become clear what does/doesn't need to be done.

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Replying to Hugo Fair:
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By Wanderer
17th Jan 2022 19:01

Hugo Fair wrote:

PPR relates to potential relief from CGT for the owner based on her/him residing there, not whether someone else in the family was doing so.

Dependent relative relief?
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Replying to Wanderer:
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By Hugo Fair
17th Jan 2022 19:38

An excellent example of why I said:
"I say 'you appear to be' because what you're saying is not always clear within OP.
But sitting down with a retained accountant should help arrive at the full story."

Although there's nothing to indicate within OP that mother was unable to look after herself during the period leading up to 5 April 1988.

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By Leywood
17th Jan 2022 19:48

At least he has provided an email for anyone wanting to provide a quote.

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By Tax Dragon
18th Jan 2022 02:31

vakani.ramesh-AT-gmail.com wrote:

Technically my acquisition date 27th September 2008.

Talk us through what you mean by this. If you mean what I would mean, and if it's right, the answer to your question is very simple indeed.

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Replying to Tax Dragon:
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By [email protected]
18th Jan 2022 10:21

In summary we bought the house in March 1982 cost was around £25K
Various Internal Transfer :
In July 1988 my wife share was transferred or sold to my sister
Value of house was £50K
In March 1995 my father passed and his share was transferred to me and my sister
Value was around £71K
In April 2003 my sister share was transferred to my son
Value was around £145K
On 19th September 1999 -Myself/My wife and my 2 children moved into new house which purchased in March 1999
My mother passed away on 27th September 2008 and my sister moved with us in new house
In Jan 2009 this original house was rented out
On 9th August 2020 this house was transferred to trust
My mother and my sister were living in the house from March 1982 to 27th September 2008
All expenses including Mortgage and council tax were paid by myself and my wife
Myself , my wife and our 2 children were living in the house from March 1982 to September 1999 but my son sometime was staying with the grandmother
Value of house in September 2008 was around £250K
Value of house on 9th August 2020 was £350K
If you require any further information please feel free to contact me on my email
Email is : [email protected]
Thank you for your help

Thanks (0)
Replying to [email protected]:
RLI
By lionofludesch
18th Jan 2022 11:04

vakani.ramesh-AT-gmail.com wrote:

In summary we bought the house in March 1982 cost was around £25K
Various Internal Transfer :
In July 1988 my wife share was transferred or sold to my sister
Value of house was £50K
In March 1995 my father passed and his share was transferred to me and my sister
Value was around £71K
In April 2003 my sister share was transferred to my son
Value was around £145K
On 19th September 1999 -Myself/My wife and my 2 children moved into new house which purchased in March 1999
My mother passed away on 27th September 2008 and my sister moved with us in new house
In Jan 2009 this original house was rented out
On 9th August 2020 this house was transferred to trust
My mother and my sister were living in the house from March 1982 to 27th September 2008
All expenses including Mortgage and council tax were paid by myself and my wife
Myself , my wife and our 2 children were living in the house from March 1982 to September 1999 but my son sometime was staying with the grandmother
Value of house in September 2008 was around £250K
Value of house on 9th August 2020 was £350K
If you require any further information please feel free to contact me on my email
Email is : [email protected]
Thank you for your help

Is there anything new in this blurb ?

Explain why you say "we" bought the property in 1982 but "technically" you acquired it in 2008.

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Replying to lionofludesch:
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By Hugo Fair
18th Jan 2022 12:37

Not just nothing new - but now portions are expurgated, starting with ...
OP "We bought the house in March 1982 (Owned by my father,myself and my wife)"
now "we bought the house in March 1982" but no definition of the "we" anymore.

I suspect "technically" is a red-herring (relating to death of mother/start of rental)?

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Replying to [email protected]:
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By Tax Dragon
18th Jan 2022 15:55

It sounds like you didn't mean what I thought you might have meant.

Your narrative gives rise to a number of questions that would need addressing before commenting on the tax. There's more to it than you have asked about. Those questions are best asked by, and discussed with, a paid advisor. It would have been sensible to do that before putting the property into trust, but you are where you are. Better late than never.

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Replying to Tax Dragon:
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By Wanderer
18th Jan 2022 10:56

Tax Dragon wrote:
vakani.ramesh-AT-gmail.com wrote:

Technically my acquisition date 27th September 2008.

Whenever a statement start 'Technically ....' it normally means that what follows is just making stuff up.
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