Hi,

I was wondering if an expert could help me with this Tax issue.

I intend to buy my mum's property, which is where we currently both reside. She has offered it to me at a lower than market value price. Are there any tax implications? If yes, do i get taxed or does she? how much are we talking about?

Please help,

thanks

She needs to consider capital gains tax. You need to consider inheritance tax. It's possible that there will be nothing to pay but you do need to look into the allowances, when she moved out and a few other factors before being able to decide if there will be likely to be any tax to pay or not.

Thank you,

Would i need to talk to an accountant then? I have also contacted the hm Revenue to find out...

It's up to you. My guess is that you can get the matter cleared up by talking to HMC&E.

If, for example, everything that your mum owns is worth under £325k, then she can give the whole property to you without any tax to pay. If she is fit and healthy and going to live for more than another 7 years, again she can give the property away without worrying about inheritance tax.

Apologies. I've just noticed you said "where we both reside" - you and mum presumably. Unfortunately, as far as inheritance tax is concerned, if mum continiues to live there, the effective date of the gift will be when she moves out or dies irrespective of any payments or agreements that you make now. So, if her estate is worth more than the inheritance tax limits, then inheritance tax would be payable on death.