| Re: would this be legal [message #382782] |
Mi, 19 April 2006 18:22 |
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In article <1145459365.699319.192880 [at] j33g2000cwa.googlegroups.com>,
yodaatk <yodaatk [at] aol.com> writes
>Hi,
>
>At present, due to my parents divorce my sister and I own 35% of my
>mothers house and the mortgage will be paid for in full this July.
>
>The value of the property is at the moment is £140K and should
>anything happen to my mother my sister and I would inherit the full
>property.
>
>My sister lives in the USA and will not be returning to this country no
>matter what happens.
>
>The Question is could I buy my mothers house for £75K, my mother would
>then give my sister the money as a gift. My Mother would then live in
>the house rent-free. Is this legal and what are the Tax implications?
>The whole family is agreement with this plan and as I am in the
>military do not need any housing myself till 2014.
>
>The plan then would be to buy another small property for my mother, as
>she would then be 80
>
>Any help on this subject would be greatly received
>
>Many Thanks
>
>Peter.
The tax authorities have powers to see through transactions conducted at
less than true market value and to assess liabilities accordingly
I have added uk.finance to my reply as that is probably a better place
to pose your question.
--
Mr X
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