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Mother in law selling house.
My wifes mother is selling her house,she is 83 and is now going into a rented bungalow by the sea.
Her home is worth £400k ish and there is no mortgage. Will she get taxed on the sale at all ? When the sale goes through,she wants to give some money to my wife and her 2 brothers,whats the situation with regards to this ? She has been advised she just cant "give money away" ? Any info appreciated. Ta |
Originally Posted by fatscoobfella1
(Post 12020069)
My wifes mother is selling her house,she is 83 and is now going into a rented bungalow by the sea.
Her home is worth £400k ish and there is no mortgage. Principal private residence relief, No Tax on her sale Will she get taxed on the sale at all ? When the sale goes through,she wants to give some money to my wife and her 2 brothers,whats the situation with regards to this ? She has been advised she just cant "give money away" ? Its called a PET (potentially exempt transfer) .As long as your Mother in-law survives after giving the money more than 7 years, there is no inheritance tax. if she only survives between 3 and 7 years then there is a sliding scale of inheritance tax. She will have £325,000 nil rate band on her estate, so there might be no inheritance tax if her estate is less than when she dies Any info appreciated. Ta |
Did she inherit her husbands estate?
if so tax free double's. |
What about capital gain on the property?
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Originally Posted by hedgecutter
(Post 12020078)
What about capital gain on the property?
Principal private residence relief |
My father in law died 2 years ago if that makes any difference
it’s her only house and she had lived in it for 20+ years Thanks for the info about the PET..thats interesting so will have a read about it if I can find some info. So basically she can give her siblings whatever she wants, but taxation will apply if she does within 7 years? Sliding scale of tax between 3-7 years |
Originally Posted by fatscoobfella1
(Post 12020089)
My father in law died 2 years ago if that makes any difference
it’s her only house and she had lived in it for 20+ years Thanks for the info about the PET..thats interesting so will have a read about it if I can find some info. So basically she can give her siblings whatever she wants, but taxation will apply if she does within 7 years? Sliding scale of tax between 3-7 years |
Originally Posted by Tidgy
(Post 12020094)
I dont believe there is a time limit on the inheritance from the death of a spouse. Always conform info with a solicitor, but my grandad passed away last year so my dad had to go through the process, my gran died many years ago (10+ at a guess) and there wasnt any inheritance tax due because it was a double estate.
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