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Hi,
I would be very grateful if can kindly shed some light into the following matter.
Synopsis of my Estates:
Estates Ownership Year Purchase Purchase Value Primary Residency Year Sold Market Value
Property 1 Brother 1991 £60,000 Brother 2008 £240,000
Property 2 Myself 2004 £220,000 Brother & His Family - £400,000
Property 3 Myself 2011 £210,000 Myself - £300,000
Brother – (History)
- My brother owned one bedroom flat, Property 1 – (above). However, he was unable to sell his property due to lack of market demands.
- Moreover, he was unable to obtain additional mortgage to buy his family home, due to his limited financial situation.
- Hence, I obtained a sole mortgage under my name, with an agreement that he would pay off the mortgage, once his Property 1 was sold.
- I took out a mortgage for a 4 bedroom house, Property 2 – (above), where my brother & his family currently reside.
- My brother eventually sold his Property 1, and I paid off the outstanding mortgage on Property 2 with the sale of his Property 1.
- However, due to unforeseeable family issues (illness), Property 2 – (above), still remains under my sole name.
- Thus, currently I have two properties (Property 2 & Property 3 above) under my sole name, and both are mortgage free.
- I understand the gifts will be subject to Inheritance Tax, if I give away more than £325,000 in the 7 years before my death.
- Therefore, I am very worried about any potential implication of inheritance & capital gains taxes
Questions:
1. Can I be exempted of any taxes on Property 2 (above), by proving bank evidences that money (mortgage) was:
a. Paid by the sale of my brother’s flat (Property 1 – above), and
b. NOT with my own savings, and
c. That Property 2 above, is my brother & his family primary residency, and I have NO interest in that property?
2. When I die, what will be the total Inheritance Tax on my estate?
3. Will there be any Capital Gains Tax?
Any help/advice would be much appreciated.
Many thanks.
Ali.
I would be very grateful if can kindly shed some light into the following matter.
Synopsis of my Estates:
Estates Ownership Year Purchase Purchase Value Primary Residency Year Sold Market Value
Property 1 Brother 1991 £60,000 Brother 2008 £240,000
Property 2 Myself 2004 £220,000 Brother & His Family - £400,000
Property 3 Myself 2011 £210,000 Myself - £300,000
Brother – (History)
- My brother owned one bedroom flat, Property 1 – (above). However, he was unable to sell his property due to lack of market demands.
- Moreover, he was unable to obtain additional mortgage to buy his family home, due to his limited financial situation.
- Hence, I obtained a sole mortgage under my name, with an agreement that he would pay off the mortgage, once his Property 1 was sold.
- I took out a mortgage for a 4 bedroom house, Property 2 – (above), where my brother & his family currently reside.
- My brother eventually sold his Property 1, and I paid off the outstanding mortgage on Property 2 with the sale of his Property 1.
- However, due to unforeseeable family issues (illness), Property 2 – (above), still remains under my sole name.
- Thus, currently I have two properties (Property 2 & Property 3 above) under my sole name, and both are mortgage free.
- I understand the gifts will be subject to Inheritance Tax, if I give away more than £325,000 in the 7 years before my death.
- Therefore, I am very worried about any potential implication of inheritance & capital gains taxes
Questions:
1. Can I be exempted of any taxes on Property 2 (above), by proving bank evidences that money (mortgage) was:
a. Paid by the sale of my brother’s flat (Property 1 – above), and
b. NOT with my own savings, and
c. That Property 2 above, is my brother & his family primary residency, and I have NO interest in that property?
2. When I die, what will be the total Inheritance Tax on my estate?
3. Will there be any Capital Gains Tax?
Any help/advice would be much appreciated.
Many thanks.
Ali.