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Capital Gains Tax

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aerodrome | 20:09 Tue 13th May 2008 | Law
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I still live with my mum, but she wants to sign the house over to me. Its hers outright. If, in years to come, i were to move out, is there a way so that i wouldn't have to pay capital gains tax if i were to sell the property? Perhaps if i moved back into that house for a few years before selling?
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I'm not sure why there is any point in signing it over to you- it's easier to leave it in her will
maybe factor becauseof IHT or if she becomes ill and needs care the equity in the house can be used to pay for it
If it is going to be your principle home, I don't think CGT will apply. Of course, any money you make on the sale of any other property could then be liable for CGT.
Is Im A BusyBee implying it might be a ruse to avoid paying care home fees? I think the authorities are pretty wise to that one.
IHT is only an issue if the estate is worth over �350,000 and there are rules about gifts. TAgain teh authorities are awre of this ruse
There are examples on Answerbank of cases where signing a house over has led to all sorts of problems.
You'd need a solicitor and you'd have to clarify both parties' rights and cover off IHT aspects.
I'm not questioning aerodrome's motives- I'm just not sure what the benefits are and if we knew we could give guidance on those perceived benfits
playing a dangerous game, i know someone who done this, signed over 1/2 the house to her son to avoid tax when she died,. It backfired when the son died first , leaving the mother to pay CGT/IT to remain living in the house..
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I think she wants to sign it over to me cos that's what her sister did for her, about 20 years before she died. Its for her own peace of mind - she worries a lot. And didn't want any fights between my brothers and i - brothers aren't always that nice if you know what i mean. Anyway, we're having an agreement drawn up so that i can't sell the house etc while my parents are there, and they can't throw me out or try and sell it etc either. But the solicitor said about CGT if i were to get another home later on. I was just wondering if you have to pay it no matter what, or if it depends on each individual situation.
As for tax evasion etc - as been implied - people can think whatever they like. If i have to pay something believe me i pay it.
Do you really think i'd be broadcasting it on the internet if i was trying to do something dodgy?? I have a brain you know??!!
Thanks to all thats replied. The response surprised me to be honest.

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