This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Marketing

A bit of data which remembers the affiliate who forwarded a user to our site and recognises orders from those who become customers through that affiliate.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Enrol now on the free landlord tax strategies course


To enrol in the 7 tax saving strategies email course complete the form below. The first module will be emailed to you immediately.

Enrol now on the free landlord tax strategies course

Thank You!

Free Tax Saving Strategies Course
The seven FREE property tax busting strategies course reveals the secrets of how to legitimately beat the taxman and boost your property profits!
View All Questions

Should she or shouldn't she?

Question
My mother is 79 and relatively fit and well. Should she transfer her home into my name in case anything should happen to her in the near future (e.g. needing to go into a home/moving in with us, etc.)? The current value of her home is approximately £120,000 as it needs a lot of alterations. Is it worth doing considering the value or not? I realise she would need to survive for at least seven years from transferring the property.

Arthur Weller replies: 
If your mother does not have additional assets besides her home that bring the value of her total assets (including gifts in the previous seven years) to £325,000, she does not really need to concern herself with inheritance tax (IHT). If so, there is no point in transferring the house to you. It is true that the value of the house could rise from its current value of £120,000, but this will only be a matter of concern if she is relatively close to £325,000. Furthermore, she may have available the IHT nil rate band of £325,000 from your father. Furthermore, if she continues to live in the house after gifting it to you, then this will be a ‘gift with reservation’, and cancel the IHT benefits of gifting the house.

Property Tax Insider This sample question and answer is taken from Property Tax Insider, a monthly UK tax saving magazine for landlords and property investors.

The first issue is free so click here to try today!

Got a burning tax question?

Why not submit a tax question to our tax advisors

Ask a Question