Capital Gains Tax

I'm sorry to hear of your loss, but I'm not sure that this is right.

I think that you mean the estate is 'settled' when probate is granted. But it is quite normal to grant probate before the house is sold.

Of course the money cannot be distributed at that point, but that is not your problem. This date should not affect when the pension company will pay the lump sum (I'm not sure what you actually mean by this either, presumably your partner had not actually retired and what you are receiving is the death benefit?)

There is no reason in principle why the other beneficiaries cannot 'self' mortgage the property.

Why does this take 2 years to sort out?

tim

And I forget to say. Why is there CGT involved in this transaction at all?

Do you mean IHT (in which case, no there is nothing that

*you* can do to avoid it) or is there a step in the transaction that you haven't explained?

tim

Very sorry to hear about your loss.

What CGT though? Presumably the estate needs your pension cash to settle its IHT bill? They can defer the tax and pay it over 10 years.

In all events there's away around the 2 year mortgage - simply borrow a bit more, and make the repayments up out of the extra borrowed :)

In message , janeboulton snipped-for-privacy@hotmail.co.uk writes

Why is there a 2 year wait? I dont understand that, and what do you mean by 'settled'?

Why are you worried about CGT? will you be buying the house cheaply and then hoping to sell it quick? If so, then as it is your primary residence then no CGT will apply.

OK. The problem is that my partner signed the pension over to me. His ex wife is now trying to claim the pension and the trustees won't come to a decision until the estate is settled. The estate cannot be settled until the house is sold, so I have to buy it, even tho I have paid half the mortgage for the last 10 years (can't prove it).

The only mortgage I can get is over 15 years, interest only for first two years. When I get the lump sum from the pension I can pay off the mortgage BUT I can't do this in the first two years. So I'm stuck with paying "a lot" of money for the two years. After that I can pay the mortgage off. Does this make sense.

I loved my partner very, very much. I don't want to be in this situation. His family don't feel the same way. I can't buy even a one bedroom flat for the same money in this area so it makes sense to buy this house, my question is still - will I be shafted for CGT if I buy and sell immediately?

My god that was quick!

There was no problem until his ex wife claimed the pension. They have been divorced for 16 years and she signed a form saying she would have no further claim.

My partner and I planned to marry this year but we didn't get there. Under the intestacy laws the estate goes to his children (I have no problem with this). My problem is that the pension trustees won't make a decision until the estate is sold (to me or A N Other) and the only way I can keep a roof over my head is to buy my own home. This means a mortgage. The only one I can get says that I have to pay £800 a month for two years even though I can pay the whole thing off when the pension is settled.

So, back to the original question, how can I buy and sell immediately without CGT?

I don't see why CGT is involved in the transaction at all. It sounds as though you already live in the property (and plan to live in it until such time as it is sold). Principal Private Residence relief would therefore give full exemption from CGT.

Mouse.

Thankyou

In message , janeboulton snipped-for-privacy@hotmail.co.uk writes

Are you sure about this? Could it be that they will only do it once Probate has been granted?

I find it hard to believe that the ONLY mortgage you can get ties you in for two years. Go to a decent independent broker. If you qualify for the mortgage you describe you will likely qualify for loads more that dont have any early redemption penalty.

Easy, buy it and then sell it. If it is your primary residence in the interim period then CGT doesnt come into it. Do you have any other houses?

I dont understand why you can buy the house so cheaply.

Sitting tenant ? Already a joint owner ?

I can't add to the answers on the CGT situation. But if you want to stay there permanently:

- Is there room to take in a tenant to help pay the mortgage for 2 years.

- Can you take a buy-to-let mortgage, rent it out for 2 years to cover the mortgage and rent/share somewhere smaller to live in (Sounds like a lot of hassle but....)