If the house is worth less than 110,000 are there any tax implications if a house is transferred to a grown up child? I know this is below the inheritance tax threshold but are there any other pit falls?
Many thanks
Will
Complex question, with more info needed. If it is being done to avoid paying for care then the local authority may assess the parents as if they still own it. You need a fair gap between transferral and going into care. Other problems if parents continue to stay in it rent-free. This makes it a gift with reservation.
This has arisen many times on this group. Try googling for previous discussions.
Neb
That's an inheritance tax issue, which he specifically assued to be irrelevant (whether it actually is depends on the size of the rest of the estate and any other big gifts which are being made).
The biggest issue in this type of situation would seem to be Capital Gains Tax, but it can be minimised by judicious use of the annual allowance by splitting the transfer over several tax years.
In message , Will Hay writes
Is it the giftors' principle private residence?
Yes, but have the giftors made any other gifts?
Yes, but please answer these points first.
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