Document Actions
House signed over by parents as deed of gift and now grandson wants to buy out recipients: is there any way to do this and avoid paying capital gains tax?
12 years ago my parents signed their house to me and two sisters as a deed of gift. My parents are now both dead and my son wants to buy the house but we have been told we have to pay capital gains tax. Could we 3 sisters sign the house to my son as a deed of gift and him pay us three equal shares of the house price from his mortgage - to avoid paying capital gains? My parents thought they were doing the right thing in signing over to us 12 years ago. Dad died April 02 and Mum died in April 07. Or do you know another way we can avoid this outrageous tax which will cripple us. My son really wants to buy the house and will be able to get a mortgage on it.
The answer depends on whether, since the you and your sisters were given the house, it has been occupied by any of you as an only or main residence and, if so, when.
If it has been then Principal Private Residence exemption will apply and no Capital Gains tax will be payable for at least part of the period of your and your sisters' ownership.
If none of you has ever occupied the house as her only or main residence then it may still be possible for you and your sisters to claim relief from CGT if you can convince HM Revenue and Customs that your late parents occupied the house as beneficiaries under a trust.
We can appoint a firm of Solicitors with the expertise to advise you further and, if necessary, negotiate with HMRC on your behalf.
Please come back to us with a convenient date and time to call.
Important! Ask your own free questions... Questions are answered accurately at the time they are posted but the law can change or your circumstances may differ in an important but not obvious way from those mentioned. For fast, free and up-to-date personal legal advice direct to your inbox about your own individual case ask Law Answers your own free legal question.
