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Capital Gains Tax Advice Please

6 replies

CharSiu · 21/01/2025 13:00

I have looked online but can't find the answer.

When DH was an undergraduate his Mother signed half her house over to him, it was to do with inheritance tax. Obviously now 30 years hence he owns his own home and will be liable for CGT. We get it and this isn’t about how to try to get out of it. My MIL who I think is in the early stages of dementia has just rung me.

She is convinced that as he was a student for many years as he did a PhD (7 years studying in total ) that as it was still his home for all those years until he met me, said with a bit of bile on her part as she can' no longer hide the fact she doesn’t like me, they should not be counted. He had housing contracts with his University and also private landlords but came home as an undergraduate in vacation time only. Surely wherever he was registered to vote would count as his legal address and the 7 years she is insisting are irrelevant. I’m hoping to find something written down so we can show her. I can't contact DH at work as he is working in his laboratory all day and it’s a bit hazardous so have said he will ring her later but any pointers to anywhere online that clarifies this I would be very grateful.

Apologies for a long post. It feels like a simple answer but I couldn’t find it.

OP posts:
HappyHolidai · 21/01/2025 13:04

You're looking for whether/when it was his only or main residence. That affects whether/how much private residence relief is due. (Typo corrected)

This helpsheet has more info.
https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2024#calculating-the-gain-where-only-partial-relief-is-due

CharSiu · 21/01/2025 14:44

@HappyHolidai Thanks I will take a look at that :)

OP posts:
LIZS · 21/01/2025 14:54

I think even so it will be too long ago to count. Is she needing to sell?

Nextdoor55 · 21/01/2025 19:24

Is the house he's living in bought with inheritance money?
Or what happened to the money or house? I don't quite understand whether the house is still in his name.
But also if she signed the house over more than 7 years ago I don't think he does have to pay inheritance tax.
But someone with more experience might come along soon.

HappyHolidai · 21/01/2025 21:52

@Nextdoor55 as no one has died Inheritance Tax isn't in point. (There was lots of this sort of thing going on in the past. Not sure whether it worked for IHT but given that the house is going to be sold while she is alive it probably doesn't matter)

@CharSiu you only pay CGT when there is a disposal. You haven't actually said that the house is being sold but presumably it is or you wouldn't be asking the question.

@LIZS why are you thinking it's too long ago to count? Is there a quirk of the rules that I've forgotten?

LIZS · 21/01/2025 21:57

It has not been his principal residence for 25 ish years

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