Capital gains tax?

Originally Posted by rob_rossi_46

thanks for replies.
the problem i have is that if she gave me the money so i bought it in my name i would have therefor no way to pay her back as i would already own the house and have no reason to take out a mortgage on it to pay her back.

That's a problem ? Sounds like the jobs jobbied

[Sir Trev]

Just to make it more complex you also need to consider:

- stamp duty thresholds - if your mum sells to you just below one you may be judged to be avoiding tax
- will this be your mums "second home"? First homes are not subject to CGT but second homes and investment properties are
- different allowances available for couples - you did not mention your mums situation in that regard
- are you sure you will be able to get a mortgage in a year's time? Even if you're (hopefully) working by then lenders may be reluctant until you have more work history

and so on...

This is a potential minefield. Go and speak to an independant financial advisor - it will be a short meeting and will not be expensive. It may well save you a lot of grief and cost later.

[embee]

Originally Posted by rob_rossi_46

... so if my mother sells it to me "on the cheap" she could get taxed? ...

I think it's an Inheritance tax issue. You can "give away" what ever you like, which I'd have thought this would count as a gift in some way, but if the donor dies within 7yrs there's an IHT liability (on a sliding scale). It's all potentially complicated, but should be sortable, you just need to be sure the eventualities are covered.

She can make 10,100 profit before CGT is applicable.

iirc, no profit, no cgt. there is a limit how much £ she can gift to you, however she can do a Potentially Exempt Transfer for an unlimited amount, which is tax free provided she does not die within 7 years of the transfer

Can you get the mortgage with her as a guarantuor?

i am still a student so would not be able to get a mortgage as i have no proof of any income. thanks for replys. if my mother makes no profit when selling to me she will not be taxed? correct?
and then when i come to sell it will be my only home so i cannot then be taxed. correct?

[SoulKiss]

Why is it that people come to bike forums to ask medical/financial/legal questions?

WHat you want to do is google for a mortgage/financial advisor and make a phone call.

Yes there are one or two people on here who probably know the answer (Ed springs to mind) but if you want an answer you can count on, call a pro.