How can we sort this out??

B

BSF

New Member
Good afternoon

Please excuse me if I have posted in the wrong section?

I/we have a dilemma regarding a property.

My father brought a cottage many years ago so his mum could live there for as long as required,

She has sadly now gone in to care, and he has willed it to me, his intentions were to gift it to myself so I could live there.

We have now found out that being his second property it is liable for capital gains tax, and we can't see a way out of this, Or how to overcome the problem?

The life long dream of owning the cottage has now turned a bit sour, as everything we look into is not in our favour!
Sad as it is I can see the only way to resolve it is to sell it, pay the dutys owed and buy something with what's left over?
But that's not what we had hoped for.

I have looked into seeing if there is a way we could have it on long term rent, just so we can hang on to it?

Has anyone been in this situation?
It seems what was once a good thing, has now turned into a bit of of a nightmare.

Many thanks
Ian
 
P

PostBrexitInvestor

Member
As John mentioned there is no easy solution to this and there will be trade-offs. Again, I am not an expert in this field and you should take professional advice but issues which spring to mind for me are:-

Do you have any capital losses you can use to offset against any gain on the property?

If you mum and dad are still together there may be a way they can also utilise each others capital gains tax allowance to reduce any potential tax liabilities

Rent out the property in the meantime until you find a way to reduce any capital gains tax liability
 
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