suppose someone inherited a house, then for a few months had correspondence sent there to give an impression they lived there (primary home). The next stage is to sell the home - so would the tax office be able to trace the seller for CGT, since the he would not go out of his way to disclose his new finacial postion ??
Or to put another way, if you dont disclose to the tax office, your new finaical gain, how the hell do they find out ????
Any capital gain in a few months is likely to be minimal, covered by the annual exemption, and not worth worrying about.
When you sell the house, the stamp duty office, or whatever they call themselves these days, finds out.
when i said he inherited ,i should have said he became total owner(he was part of 3 names of a joint tenacy). he lived in the bought house
1988-1995.since then he has bought 3 diifernt (primary)homes, thus creating his origanl home as the secondary home. surely there is cgt on the secondary home and more importantly, he is duping the tax man into thinking it is his primary house !
When did he inherit? Was it his primary home at the time? Was it his primary home from when the 3-way joint tenancy was first created? When did it cease to be his primary home, and was it his secondary home from then on, or was in fact rented out? In which case it wasn't even his secondary home.
Is he planning to sell now, or wait few years? What's your interest in all this?
It's conceivable that, if it was one of his homes, he elected to nominate that one as his primary. That's quite proper and above board. There's no rule which says you actually have to live in your "primary" more than half the time.
he became the sole owner 2003
no, he has a joint tency in another house when he moved out , he was married for 6 years (she totally owed the thier house), got divorced then got his own home for 1 year. sold that and now has set up with a new partner (joint tenacy).
yes
he moved out in 1992, taking and selling the endowment policy, thus forced parents to ask DWP for assistance in mortgage interest payements.
he sold this year (6 months after both parents had passed away)
the rest of family assisted for the remaining years with payements, thinking we had seen the last of thw wayward brother. but unknown to all of us he had not been truthful with his dealings with the family/parents. unknown to all, he had managed to get his name on the title deed as guantor. so he turns up at the last funeral takes the house keys and says 'stuff the morals and ethics, thanks very much i'm in the money' !!!
yes we've seeked legal advise and its all above board, so if the tax man can get the git then we've got our pound of flesh !
In message , colin writes
Why dont you just report him to the taxman and let them make an enquiry into it?
He probably wont have committed any kind of fraud yet as I dont think it will need to have been declared yet.
How long before 1992 was this 3JT created, and was it a joint purchase or did he somehow persuade the parents to convert their pre-existing 2-way JT into a 3-way one in return for him standing as guarantor on the loan?
Reading between the lines, the impression I get is that this, in your eyes, was his real crime, namely cheating you out of your inheritance. Perhaps the parents didn't realise the implication of what they were being persuaded to do, namely that by making him a joint tenant it would take the house out of their estate and you would get nothing, and he would get it all.
This bit doesn't make sense. Selling the EP has no effect on the interest payments. In fact, it would lower their outgoings as the endowment premiums would no longer need to be paid. Also, not only as guarantor, but as sole remaining mortgagor, he was responsible for repaying the whole loan, so it's not as though his free lunch included all the trimmings. Did he, as joint owner, contribute a share of the interest payments (and of the endowment premiums prior to the policy being sold) while the parents were still alive?
Chances are his CGT bill is not going to be all that vast, but of course if he does attempt to defraud the IR by exaggerating the number of years of primary residence relief to which he is entitled, then the penalties could be severe and might even include an all expenses paid stretch in one of Her Majesty's holiday camps. But you'll need to wait until after January 2005 to report him, which is when his tax return for 2003-04 is due in. Or longer if he's happy to take late submission penalties. He has plenty of thinking time before he commits himself to committing fraud.
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