Tax advice - Capital Gains tax - HotUKDeals
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Tax advice - Capital Gains tax

guilbert53 Avatar
7y, 4m agoPosted 7 years, 4 months ago
My elderly mother had some shares. She has had them for many years (my father bought them before he died).

My brother is trying to move house, and cannot sell his house, but needs to buy the other house.

My mother has sold the shares (about £50,000 worth) and lent the money to my brother to tide him over.

Are their any tax implications on this (Capital gains tax for example)?

If my mother died would their be other tax implications?

Assuming my brother had not repaid the money would their be other implications if my mother died?

Sorry to be morbid, but my mother is very elderly and frail so could die at any time. We have to consider this if the money is not returned.
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guilbert53 Avatar
7y, 4m agoPosted 7 years, 4 months ago
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#1
yeah you gotta pay the tax on the gain of the shares, think they take the value at march 1982 cause you ahve had them so long and the gain will be taxed, although there is new rules in this year and im not totally up to date with them.
If your mum dies then inheritance tax will be due to be paid on this
#2
^^^ as above although CGT is not payable on a main residence although I think in this case as your brother has not sold his house this relief would not be applicable

This may assist http://www.hmrc.gov.uk/cgt/index.htm#1
#3
fireheaven
^^^ as above although CGT is not payable on a main residence although I think in this case as your brother has not sold his house this relief would not be applicable

This may assist http://www.hmrc.gov.uk/cgt/index.htm#1


But it may be if he claims it as his main residence on paper.
#4
Jumpingphil
Have I missed something here.
Why are we talking about the brother's residence?


God knows. I think the real question is...

If the old dear pops off, will we end up with sod all and the brother laughing all the way to the bank.
#5
Shengis;5713953
God knows. I think the real question is...

If the old dear pops off, will we end up with sod all and the brother laughing all the way to the bank.

yes if there is nothing in writing about paying back the debt
#6
Okay, your mum is liable for Capital Gains Tax on the profit from the shares. If they are pre 1982 then as mentioned above the 'purchase' value will be the price at March 1982. The first £9600 of gains in any tax year can be written off against your mums personal allowance. Anything over that will be taxed at 18%. Need to fill in a self assessment form to register it.

If your mum passed away the money would become what is called a potentially exempt transfer and could become taxable but it is your brother who would be liable, not your mums estate.

The inheritance tax issue only becomes a problem if your mums estate is valued at £650,000+ (including the £50k) assuming your father passed everything to her directly. If there were other people that he left money to then it gets a little more complicated.

Only other implication is that as sn0ttyang3l said if there is nothing on paper then it could lead to a mass family arguement if she died.

The main residence bit, no implications at all unless he changes his mind about selling it.

Hope this helps, give me a shout if you are struggling.

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