Penalties incurred in signing over family's house?!

B

Bobby ARGCC

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My parent are intending to sign over the deeds of the family home to me and I wish to know if there will be any penalties involved in this process; i.e. 'Benefit In Kind', 'Inheritance Tax', etc.
The house is currently insured for 220,000 (was evaluated approx. three years ago).
This will be my first time owning a property.
I'd appreciate a bit of advice on the best approach to do this.

Thanks in advance....
 
First question: why are they doing this?
Second question: where are they going to live?

Your parents are making a gift to you. There are not so much "penalities" involved as taxation implications.

Possible taxation implications:

1. For you

Stamp duty
CAT - have you received any other gifts or inheritances.

2. For them

CGT

Each set of circumstances is different. Both sides should be quite clear why they are doing this and the long term implications.

mf
 
Hi MF

As for your first two questions, thanks for you concern. I'd like to alleviate this by saying that there is whole family consensus (incl. parents & other siblings) on this course of action.

What sort of stamp duty might I be liable for? I haven't received any other gifts or inheritances.

What is CGT? And how might it affect my parents? (Both are OAPs)

Bobby ARGCC
 
Hi Bobby - I guess that MF is wondering whether this is the right thing for your parents to do, from their point of view. Have they taken seperate legal advice on this? Have they other assets to support them through their old age? Have they guaranteed rights of residence in some property?
 
If your parents are disposinng of their principal private residence to you than it is exempt from cgt.
Stamp duty at the normal rates apply with a 50% relief.
If you are under the CAT threshold of 420000K for gifts/inheritances than you have no CAT liability
 
If the house is not going to remain your principal private residence then it may be better from a capital gains tax aspect, for you to inherit the house in due course rather than aquire it now.
 
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