If somebody gives me a house...

The person giving the "gift" must live for 7 years and must not continue to live there. It must be an outright gift with no retained interest. Also, t here is something about being preowned by a member of your family....no dou bt someone will come along and elucidate on that Point. If there is no second home for you, if you sell it and it is your only or " primary" residence then no capital gains tax will be payable by you. The capital taxes office will need to be aware of the fact that the gift if it is above a value threshold. I can't remember what that value is but you should find it somewhere here;
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Reply to
Clive.lister

Not (usually) the recipients problem.
IHT is paid by the estate on death and PETs are not clawed back (pro rata) to pay any tax unless the residual estate isn't large enough to pay the total due (and no I don't know what the process is in that case)
Only a problem if the giver continues to live there, so covered by the earlier points
tim
Reply to
tim.....
If the giver continues to live in the house you can find that although the gift takes effect for CGT, it does not take effect for inheritance tax. Y ou can then get the worst of both worlds paying both IHT when the giver die s plus CGT when the house is sold.
Robert
Reply to
RobertL

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