.png)
.png)
My client is a 40% taxpayer. In 1981, he loaned about £20,000 to his elderly, infirm and widowed mother so that she could purchase her council house. He believes that the house would have been left to him in her will rather than to his brothers.
My client is a 40% taxpayer. In 1981, he loaned about £20,000 to his elderly, infirm and widowed mother so that she could purchase her council house. He believes that the house would have been left to him in her will rather than to his brothers.
In February 1992, the house was transferred into my client's sole name for no consideration (a valuation will be required). His mother was allowed to reside in the house rent free throughout. My client's mother has just died. He would like to sell the property which is now worth about £120,000. He did not own the property on 5 April 1988, so it appears that dependent relative relief will not be available and he is likely to incur capital gain tax. This seems rather unjust, so I should be grateful if readers could confirm whether I have missed anything.
I have another client who also wants to do the same for his mother-in-law. His sister-in-law still resides with her mother in the house.
Do readers have any ideas as to how clients can avoid or mitigate capital gains tax, but still ensure that the house eventually vests in them?
Query T16,661
