W
weeping will
Guest
Hi,
My Aunt(who raised me,my Mother having died) lived in a Corporation house. She was an unmarried lady, an old age pensioner with little if any means.
When ,finally, the time came for her to go into a nursing home she urged my husband and I to purchase the house(under the tenant purchase scheme).We did not reside with her, so, it came as a surprise when the Corp. agreed to do so --- provided we would relieve them of any future housing responsibility in relation to my Aunt.
In 1998 we borrowed the money and purchesed the house(at approx twothirds of its value).We sold a year later at slightly above its `98 market value -profit £27,000 almost all of which we proceeded to invest in single premium insurance.
We considered this whole business to be a gift from my Aunt in return for our ongoing concern and support for her. Therefore we did not declare for CGT.
We have now been advised that only that amount, the difference between the tenant purchase price and the market value could be considered to be a GIFT and the surplus,ie. the difference between the original market value and the eventual selling price would be liable for CGT.
What doyou think?
My Aunt(who raised me,my Mother having died) lived in a Corporation house. She was an unmarried lady, an old age pensioner with little if any means.
When ,finally, the time came for her to go into a nursing home she urged my husband and I to purchase the house(under the tenant purchase scheme).We did not reside with her, so, it came as a surprise when the Corp. agreed to do so --- provided we would relieve them of any future housing responsibility in relation to my Aunt.
In 1998 we borrowed the money and purchesed the house(at approx twothirds of its value).We sold a year later at slightly above its `98 market value -profit £27,000 almost all of which we proceeded to invest in single premium insurance.
We considered this whole business to be a gift from my Aunt in return for our ongoing concern and support for her. Therefore we did not declare for CGT.
We have now been advised that only that amount, the difference between the tenant purchase price and the market value could be considered to be a GIFT and the surplus,ie. the difference between the original market value and the eventual selling price would be liable for CGT.
What doyou think?