Hi All,
My wife and sister have recently been speaking to their mum about her gifting them the property she plans to leave them in her will. The idea being that she can see them actually enjoy the life such a gift would bring.
The property was purchased after September 1985 and the mother lived in it as her PPOR until about 5 years ago when she moved in with her new husband and has since rented the property out as an IP.
The property was purchased for 120k and is now worth about 650k. My understanding is that if the mother just sold the house herself now she would not be liable for any CGT (If she did not claim her husbands house as her PPOR). If she then gifted them the money from the sale there may be other tax considerations though?
The other scenario is if she gifted them the property now? My understanding is she would not need to pay any CGT on the gift to the kids as per above but what if they then immediately sold the property? Does the CGT PPOR exemption pass onto the kids with the gift OR does the clock basically re-set and the kids would be liable for the CGT on the 530k (650 sale - 120 purchase)?
My wife and sister have recently been speaking to their mum about her gifting them the property she plans to leave them in her will. The idea being that she can see them actually enjoy the life such a gift would bring.
The property was purchased after September 1985 and the mother lived in it as her PPOR until about 5 years ago when she moved in with her new husband and has since rented the property out as an IP.
The property was purchased for 120k and is now worth about 650k. My understanding is that if the mother just sold the house herself now she would not be liable for any CGT (If she did not claim her husbands house as her PPOR). If she then gifted them the money from the sale there may be other tax considerations though?
The other scenario is if she gifted them the property now? My understanding is she would not need to pay any CGT on the gift to the kids as per above but what if they then immediately sold the property? Does the CGT PPOR exemption pass onto the kids with the gift OR does the clock basically re-set and the kids would be liable for the CGT on the 530k (650 sale - 120 purchase)?
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