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Selling House to Family Member

Discussion in 'General Discussion' started by Doug99, 13 Sep 2018.

  1. Doug99

    Doug99

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    If I decide to 'downsize' and sell my current home to my daughter, who decides what is considered market value? Hence avoiding any accusation of gifting the house and inheritance tax rules?
     
  2. EFLImpudence

    EFLImpudence

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    HMRC ???
     
  3. Mottie

    Mottie

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    You could get a few valuations from estate agents maybe? What about stamp duty?
     
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  4. Bosswhite

    Bosswhite

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    An Estate agency would give you a current price for the property, but dont forget the seven year rule for IHT
     
  5. sodthisforfun

    sodthisforfun

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    Estate agent valuations. There's no inheritance tax issues if your daughter pays market value?
     
  6. HawkEye244

    HawkEye244

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    Inheritance tax will be £500,000 by 2020, this includes a £175,000 gift allowance. If your property is below this value you are likely better off keeping it and passing to her any savings that you may have. The trouble is, what about your care were anything to happen ? You can't sell the house below market value and get away with it unfortunately.

    It's good of you to think of your dsughter but money does funny things to people. Don't forget about your basic needs.
     
    Last edited: 15 Sep 2018
  7. Ian H

    Ian H

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    Haven’t you already been taxed on the money you earned to buy it?

    It’s ridiculous that you/your daughter should be taxed again when you pass.
     
  8. HERTS P&D

    HERTS P&D

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    Sell it to her after March.......it will be 1/3 cheaper........according to this mornings news.

    Andy
     
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  10. wgt52

    wgt52

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    Ask for 'selling' valuation, That is the lowest offer you would accept; not an advertising/marketing valuation, that is the valuation that the estate agency will advertise it for.
    That is what I did when I bought my first house - Gran parents lost £2K in what I paid them but saved £1K6 in tax... And it meant my mortgage was that much shorter.
     
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  11. HawkEye244

    HawkEye244

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    True and the super rich mostly avoid paying inheritance tax due to tax havens, trusts etc. Not accessible to most of us. It's always been this way, the irony is that labour wanted to increase the tax burden for the worst off, and the super rich would have continued to successfully dodge it. It's gone up from £325,000 so it's moving in the right direction.
     
  12. Roger928

    Roger928

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    Last edited: 15 Sep 2018
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  13. HawkEye244

    HawkEye244

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    Notch, it's mentioned in your link. By 2020 you are able to pass on £175,000 in addition to the £325,000 thereby the tax free threshold will be £500,000.

    Obviously doug99 will unlikely want to share his financial status, but if his estate is less than £500,000 including cash, bonds etc, he may not need to worry anyway. That's all I'm saying.
     
  14. Doug99

    Doug99

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    Thanks everyone............all useful info :)
     
  15. ^woody^

    ^woody^

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    Sell it? It's your daughter FFS, give it to her.

    Just try not to die until after 2025.
     
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  16. Brigadier

    Brigadier

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    No different to any tax after income tax.

    One that boils my p!ss is being taxed on tax:
    VAT on fuel duty for one, iirc.
     
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