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is KEWCUMBER about??or any accountants that want to advise me<<<PlaeSE>>>>>

(8 Posts)
MaloryTowersUrbaniteLady Fri 18-Jul-08 21:20:35

Message withdrawn at poster's request.

MaloryTowersUrbaniteLady Fri 18-Jul-08 21:26:39

Message withdrawn at poster's request.

jura Fri 18-Jul-08 21:38:34

Message withdrawn at poster's request.

CantSleepWontSleep Fri 18-Jul-08 21:39:36

Would help if you actually asked your question!

MaloryTowersUrbaniteLady Sat 19-Jul-08 10:23:30

Message withdrawn at poster's request.

jura Sun 20-Jul-08 23:37:50

Message withdrawn at poster's request.

CantSleepWontSleep Mon 21-Jul-08 07:52:51

I'm not a tax specialist either, but largely agree with Jura (and have sold a property myself which I had to look into this for).

One thing worth asking is whether this used to be your main residence? If so, then it is treated as though it was your home for the last 3 (I think) years, which reduces the tax liability.

squiffy Tue 22-Jul-08 01:08:27

You cannot get rollover relief for this type of transaction, so putting it in another property won't work...

If you sell it to your DB at a figure that is obviously well below market value in order to save CGT (and keep your fingers crossed hoping you won't get found out) you have four issues:

1) If he wants a mortgage he will need a valuation. If there is a big discrepancy between that valuation and official sale price then I think the solicitor has a legal duty to ask why, and a duty to notify the tax office of a potential undervalue sale, and that is how they find out about it...

2) If your DB gets a 'drive-by' type valuation (which is more likely to simply confirm the 'official' asking price than other types), then this will dictate the maximum mortgage he will get, so he would have to have significant cash to cover the amount by which you might want to undersell. and of course this needs to be paid at a different time from the rest of the transaction

3) If your DB pays you an undersale price and then sells it on at huge gain in a short period of time he will also be quesitoned by solicitor as to why sudden value increase, so you can get caught out at that 'end' as well (although you could argue that it was totally reovated or something in the interim - but could still get reported and asked to supply proof of works 'done' to increase the value)

4) Your bank monitors your transactions and will investigate any 'unusual' activity (yes, big brother really is watching you); if you do not normally have big chunks of money coming in here and there, then you will for sure get a call asking you what this money relates to. And they will then report you because they have a legal obligation under money laundering rules. The only way to get round this is to open say half a dozen internet accounts and fill them slowly with the proceeds. Or get your brother to decide to opent trust funds in favour of your kids or something.... complicated..

The risk of being caught is reduced if there is no mortgage involved (and hence no valuation), if there is a significant period of time during which your DB owns the property, and if you and DB do not share the same surname (solicitor less likely to be 'put on notice' than if you have same name). Obvioulsy the size of the monies you are talking about will determine if this is more likely to pass under the radar.

Tis a bummer, but thems the rules, and mere mortals who try this kind of thing can easily get caught out.

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