Paying tax on sale of second home in UK???
My mum has bought a new house and is moving in soon. She is selling her old house to me. She has no mortgage left on the old house and I am financing the purchase with a buy-to-let mortgage. Will she have to pay tax on the money she receives from me?
Public Comments
- No...she is, in effect simply selling one house and moving into another. The fact that she is selling to her son is immaterial.
- Who cares about u or your mom?
- if she has 2 properties in her name then she will be subject to capital gains tax on the second property when it is sold. Maybe if she just transfered the house into your name and you could come to some arrangement with her to pay . Best to see an accountant.
- If this property that she is selling to you is her main residence, and has been for some time, then no, she will not pay any Capital Gains Tax (CGT). CGT is only payable on the sale of a property that is not your main residence, or one that was once your main residence and has been let out. If you are buying with a buy to let mortgage I take it you intend to rent it out. When you come to sell this property, should you not live in it then you will be liable to CGT upon sale. I believe that this is circa 40% of the profit after allowances. If she is selling to you at below market value then this could create a tax implication for you should your mum die across the next seven years. Check this with the solicitor sorting the conveyance if this is the case. Regards.
- No she is selling her main residence to replace it with another. If this had been a second property which was not her main residence like a holiday home or she rented to a tennant then she would have to pay tax on the profit she made.
- Its a question of timing - hopefully she will not be the owner of two houses at any one time. Its straight forward enough if she sells and buys simultaneously, like any property transaction
