capital gains tax - a terrible mess, need advice pls

[vannah]

hi,
would really appreciate some advice here. Will try to summarise story as much as I can.

About 7 yrs ago, I remarried for the second time. My first marriage ended in such a bad way with my ex trying to get at my property despite him having his own. They were empty threats but it frightened me enough to sell the property when I married my 2nd husband (who was at the time in debt and a student!), gave the money to my parents who bought a little flat with my consent(investment) and put it in their names should this marriage go wrong.

Two yrs ago I asked them to put it back into my name as my marriage touch wood seems ok and parents are getting old/ dad has cancer.

So my dad saw his solicitor, and he 'gifted' it to me. He now has a letter from IR saying CGT is due as the flat has raised in value by £100k.
This is so sad, as they were only trying to protect me and the money used for the flat was mostly mine. My dad has no money, and the tiny bit that Ive saved was going towards a fund for my childrens university fees. My husband doesnt earn enough for us to ever save.

Any advice?
thankyou

I am presuming your Dad has not lived in the property as his principle residence? CGT is not payable on your principle residence.

There may be a possibility of 'holding over' the capital gain using form IR 295 but bring that to the attention of the solicitor and ask him/her if it can be done in retrospect.

It just means the capital gain is in effect transferred to you and then once the property is sold you pay the CGT rather than your Dad.

This area of tax is incredibly complex though.

thankyou so much beenbeta, going to click on yr link now.
I assumed it meant that he is liable to pay now, for the mere act of 'gifting' it to me this makes me SO angry!!) and that I'd then be liable to more CGT if it was ever sold by me.
It's always been rented out...
thankyou