Property News · December 18, 2013

Would a gifted house deposit be liable for tax?


My sister says anything our parents give me could attract inheritance tax and capital gains taxQ My parents want to help me with a deposit on a flat. My sister thinks that if they give me any more than the £3,000 which can be passed under an annual exemption, the cash would be liable for either inheritance tax (IHT) or capital gains tax (CGT). My mother insists that as long as she or my father outlive the gift by seven years, it would not be taxed. Who is right? EBA Your sister and mother are both right, although your sister is wrong about CGT. Where your deposit comes from has no impact on whether you will pay CGT on the property you buy – that is down to whether it is your main home for the whole time you own it. Continue reading…

Source : theguardian.com
Read more…Would a gifted house deposit be liable for tax?

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