Gifting A Property

[Ric.ror]

My mother would like to gift me the flat she owns
It is an ex LA flat which she bought and she has now moved to a ground floor flat - underneath the one she owns as it happens
Can she do this or will I need to buy it from her?
If I have to buy it she will only then gift me the money

[ubasses]

As long as she has owned the flat long enough for the LA to no longer have an interest in it she can make a lifetime gift of the property. However if she dies within 7 years the value, on a decreasing scale will be taken into account for IHT purposes which could cause a tax liability depending on the value of the remainder of her Estate.
The second thing you may need to think about is any future care needs. She would not get any funding assistance if she is deemed to have disposed of assets which could be paying for her care. The brochure I was given when my mother had to go into a Care Home stated they could go back up to 20 years.

[Ric.ror]

The flat is her only asset and not worth more than £80k
That and the fact I will soon be living in the flat

[Retrochic]

You can transfer ownership of Land And Property through the Lnd registry and no money need change hands

https://www.gov.uk/registering-land-or-property-with-land-registry/transfer-ownership-of-your-property

I am not sure about the Tax implications but if the property will be your only place of residence, then I don't think Capital Gains applies -though it may apply if you have sold yur main reisdence and made a substantial gain, before moving into your mothers flat.

[Ric.ror]

I don't intend to sell my house - I intend to rent it out

[bednobs]

while not wishing to suggest that any of the previous answers are wrong, wouldn't it be better for you to get actual legal advice from a real person in person about this? There are many tax implications, and legal advice could help you make the most of the gift. Is there any particular reason yourmum wants to gift it to you now? rather than wait and distribute it in her will? Is the reason to avoid care fees?

[Ric.ror]

She's 88 and I will be living upstairs - I am hoping she won't be requiring any other care fees

[bednobs]

then what is the benefit of giving it to you now?

[Hopkirk]

I am no expert, but I believe that if it became your main residence, then your house would be subject to capital gains tax if you sold it in the future.

Bednobs is right - you need advice from a qualified person.

[Dogsbody2]

This question then becomes about your principal private residence (PPR) and the relief from capital gains tax liability that is possible.

By the way, I fully support what ubasses had to say in his first response to you.

The house you have been living in and will move out of gets PPR relief up to the time you move out plus 18 months. It used to be longer but is reduced. So if you rent it out in October 2015, any increase in capital value from April 2017 and the date you sell it would trigger a tax liability. You can offset any liability against your personal annual CGT allowance.

The flat you move into becomes your new PPR as of Oct15.

There's a decent explanation of it with more detail of the caveats here
http://taxaid.org.uk/guides/information/other-taxes-you-may-need-to-know-about/capital-gains-tax/selling-our-main-private-residence

[Ric.ror]

I have no intention of selling my house as that will be my 'pension' - in fact - in time I may wish to buy another property to rent out
I aim to chose properties that I would be happy to live in - just in case

[Peter Pedant]

Yes I think plan A would work
She can gift it to you
If she really has no assets beyond that ( well two flats at 80k still way under the IHT threshokd)
then altho the 7 y rule applies - there would still be no tax to pay

I think asking us first and then going and getting advice is sensible

Bednobs observationn - why dont you see someone who knows what they are talking about ? cd validly apply to any question on the law thread