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

I helped out my penniless brother – but will I be able to avoid CGT?

Question I purchased a house for my bankrupt and penniless brother in law in June 2003. He was then 78 years old and is now 80 years old. I have paid all the bills relating to this house except the bills from the utilities.

When he dies am I exempt Capital Gains Tax on this property assuming the property has increased in value?

Arthur Says:

Unfortunately you are not exempt from Capital Gains Tax (CGT) when he dies.

If you would have put the property into trust when you purchased it, and then let your brother in law occupy it, you could have avoided any CGT when he died.

This shows the importance of advanced tax planning!

It may be worth your while now speaking to a tax consultant to see whether the application of the 'implied trust rules' are relevant to your situation.

In short the ‘implied trust rules’ are based on a situation where person A can own a property and person B lives in it. However in very special circumstances person A can get PPR despite there not being a trust in place.

As mentioned this only applies to very special circumstances and professional advice needs to be sought.

Case Study

Landlord Tax Secrets Get our SEVEN FREE Landlord Tax Saving Strategies - Guaranteed To Slash Your Property Tax Bills!
Click here for more.

Got a burning tax question?

Why not submit a tax question to our tax advisors

Ask a Question