Mum gave me her house in 1993. She is now in care home. When I sell it the money will be divided six ways.

Question

Will I have to pay Capital Gains Tax?

Answer 1

If you've lived in the house for all that time then no you won't have to pay CGT but if you have lived elsewhere and rented the house out then you will.

If you go here http://www.hmrc.gov.uk/ all the information you need wiil be there, otherwise you should contact an IFA or an accountant who will advise you on the detail.

Answer 2

I believe on a house you have lived in for the last 3 years there is a special exemption on the capital gains tax- check into it>

Answer 3

Why wouldn't you use the money from the house to pay for you mom's care?

Also, It depends on how she gave you the house.

Answer 4

Did she actually sign the house over to you ..is your name on the title deeds?

If she just said "you can have the house" then its still hers and can be sold to pay for her expense's in care.

Again it all depends on what it is sold for and who is the executor of the will, when your mum passes. (hopefully she doesn't for years as long as she is well & happy)

Answer 5

In 1993 your mum hope that you will continue to stay with her and also to take care of her as she is now old. So in her own way, she decided that the house is yours if you continue to do that. Now all of you have decided to put her in a care home If the house is still in her name, it should be sold and the money pay for her stay at the home.

Answer 6

Capital gains on a house you have been given is worked out based on the value of the house when it was given to you taken away from the value of it when you sell it ( seen I think as the profit made) and you will be taxed on that "profit" not the whole value. Currently 2008/9 you will be taxed on any gain over £9600 at the rate at which you pay PAYE tax taking into consideration the current PAYE tax bands which are :-  less than the starting rate limit at 10 per cent, between the starting rate and basic rate limits at 20 per cent and above the basic rate limit at 40 per cent.

I hope this helps. Good Luck