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Tax advice

(6 Posts)
Gonzo33 Tue 21-Jun-11 17:25:30

Nine years ago my Mum and Nan helped me buy a house whilst I was going through a divorce. To stop my exh from claiming on the property they put a percentage charge on it.

Now I am looking at selling the house and buying another as I have subsequently remarried and had another baby and the house is too small (2 bed).

My Mum and Nan want to lose the charge on moving and give me the money instead of lend it to me. Can this be done without them having to pay any income tax on it? The increase for my Mum would be 18k approx and for my Nan around 13.5k. My Nan is a pensioner, and so will my Mum be by the time this happens.

If not, can they "port" their charges to the new property and keep their wills as they are (i.e forgiven upon death)

Thanks.

Me xx

Ps I have tried to call the I.R but they are extremely busy right now.

HarrietJones Tue 21-Jun-11 19:36:06

No knowledge but I was wondering about the 'gift' rule, can you be given any of it as a gift? That would at least reduce their tax liability.

Think you need an accountant, must be one on here.

Gonzo33 Wed 22-Jun-11 04:59:18

I do really I guess, but I don't live in the UK at the moment, hence why I am asking on here.

CogitoErgoSometimes Wed 22-Jun-11 07:23:17

It may benefit you to talk to a solicitor about this. It looks like a combination tax, inheritance and property ownership matter and you may need legal advice to navigate it successfully.

MovingAndScared Wed 22-Jun-11 11:48:37

talk to accountant (and probably solicitor) - someone should be able to help you on the phone - or get your mum to do it - I would imagine that there will be a way to minimise the amount of tax due -if any - but you need a professional to help you navigate through it - it might be that they loose the charge and turn it into a gift before you sell it for instance -also there are genorous capital gains allowences and inheritance tax allowences so neither may be relevant

Gonzo33 Wed 22-Jun-11 12:25:20

Thank you everyone.

I managed to get through to the IR just now and they advised just what you said M&S. So my Mum and Nan are going to remove the charges soon. There will be no tax, and it will not come into IR because seven years has passed since they "lent" me the money.

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