nome Posted February 1, 2017 Share Posted February 1, 2017 Here's an interesting tale from my home town, after being evicted for failing to pay £75k legal costs in a battle she lost with neighbours over damaged listed roof tiles, the homeowner has now sold her house for £2 to a couple of ''benevolent private companies'' and is now living back in her house as a tenant with a 10 year tenancy agreement. The word is these supposed ''benevolent private companies'' are actually family members Surely if it was this simple every home owner with huge debts would be doing this kind of thing?.. http://www.manchestereveningnews.co.uk/news/local-news/cottage-seizure-sold-2-glossop-12527480 Quote Link to comment Share on other sites More sharing options...
kibuc Posted February 1, 2017 Share Posted February 1, 2017 3 hours ago, nome said: the homeowner has now sold her house for £2 to a couple of ''benevolent private companies'' I'd expect HMRC to be all over their asses - for stamp duty avoidance now and for massive CGT in the future. Quote Link to comment Share on other sites More sharing options...
crazypabs Posted February 1, 2017 Share Posted February 1, 2017 22 minutes ago, kibuc said: I'd expect HMRC to be all over their asses - for stamp duty avoidance now and for massive CGT in the future. unless by some miracle she manages to find £2 to buy the property back once this has all blown over and she has the CGT losses carried forward against future gains, or something like that? Either way, HMRC wont be happy and would certainly challenge this. https://www.gov.uk/capital-gains-tax/losses Quote Link to comment Share on other sites More sharing options...
kibuc Posted February 1, 2017 Share Posted February 1, 2017 Quote In some situations you should use the market value of the property when working out your gain. Do this if: it was a gift (there are different rules if it was to your spouse, civil partner or a charity) you sold it for less than it was worth to help the buyer you inherited it (and don’t know the Inheritance Tax value) you owned it before April 1982 HMRC seems to have that particular base covered. https://www.gov.uk/tax-sell-property/work-out-your-gain Quote Link to comment Share on other sites More sharing options...
CunningPlan Posted February 1, 2017 Share Posted February 1, 2017 I think the Official Receiver will resolve this long before HMRC need to do anything. Quote Link to comment Share on other sites More sharing options...
crouch Posted February 1, 2017 Share Posted February 1, 2017 2 hours ago, crazypabs said: unless by some miracle she manages to find £2 to buy the property back once this has all blown over and she has the CGT losses carried forward against future gains, or something like that? Either way, HMRC wont be happy and would certainly challenge this. https://www.gov.uk/capital-gains-tax/losses If this was her principal private residence then she is not subject to CGT nor can she have losses carried forward; she is outside the scope of the tax. Quote Link to comment Share on other sites More sharing options...
crazypabs Posted February 1, 2017 Share Posted February 1, 2017 16 minutes ago, crouch said: If this was her principal private residence then she is not subject to CGT nor can she have losses carried forward; she is outside the scope of the tax. oh yes, of course, don't tell the taxman though as he will probably change the rules to place cgt on principle residence. Actually that might cause an HPC,...hmmm should you tell Mr Treasury or shall I? Quote Link to comment Share on other sites More sharing options...
ThePiltdownMan Posted February 1, 2017 Share Posted February 1, 2017 Look at record {A0FF0CEB-EC42-40A3-B4F8-D46D2FBFD7D4} in the land reg 2007 price paid data. Does that seem right to you? Quote Link to comment Share on other sites More sharing options...
simon49 Posted February 1, 2017 Share Posted February 1, 2017 Might help to bring the average sold price down in the area. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted February 1, 2017 Share Posted February 1, 2017 11 hours ago, nome said: Here's an interesting tale from my home town, after being evicted for failing to pay £75k legal costs in a battle she lost with neighbours over damaged listed roof tiles, the homeowner has now sold her house for £2 to a couple of ''benevolent private companies'' and is now living back in her house as a tenant with a 10 year tenancy agreement. The word is these supposed ''benevolent private companies'' are actually family members Surely if it was this simple every home owner with huge debts would be doing this kind of thing?.. http://www.manchestereveningnews.co.uk/news/local-news/cottage-seizure-sold-2-glossop-12527480 https://houseprices.io/?q=Simmondley+Village Not shown up yet? Quote Link to comment Share on other sites More sharing options...
ThePiltdownMan Posted February 1, 2017 Share Posted February 1, 2017 (edited) 2 hours ago, SarahBell said: Not shown up yet? In the source data available in CSV the 2007 sale has changed to be some blend of that address and an East London leasehold flat. I didn't want to post it in full in case it breaks some data protection rule. No recorded sale since then though. Edited February 1, 2017 by ThePiltdownMan Quote Link to comment Share on other sites More sharing options...
Bear Hug Posted February 1, 2017 Share Posted February 1, 2017 it all looks very dodgy. Price reduction is nothing to do with housing market, however attractive the headline may look to us bears. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted February 1, 2017 Share Posted February 1, 2017 How did she sell for £2 a house she had been evicted from? Who actually has a charge on the house? Quote Link to comment Share on other sites More sharing options...
MrPedantic Posted February 1, 2017 Share Posted February 1, 2017 According to a comment on the Daily Mail article, her parents are the directors of the purchasing companies. If a Court oeders her to pay money and she disposes of assets in this way, wouldn't this count as contempt of court? Quote Link to comment Share on other sites More sharing options...
ingermany Posted February 2, 2017 Share Posted February 2, 2017 4 hours ago, MrPedantic said: According to a comment on the Daily Mail article, her parents are the directors of the purchasing companies. If a Court oeders her to pay money and she disposes of assets in this way, wouldn't this count as contempt of court? Yep, and helping the purchaser avoid SDLT, tax avoidance, conspiracy etc. Question is, why has the Mail published her public confession? Why didn't they warn her. Quote Link to comment Share on other sites More sharing options...
adamLancs Posted February 2, 2017 Share Posted February 2, 2017 3 hours ago, ingermany said: Yep, and helping the purchaser avoid SDLT, tax avoidance, conspiracy etc. Question is, why has the Mail published her public confession? Why didn't they warn her. You ask that question as though the Mail once had a conscience... Quote Link to comment Share on other sites More sharing options...
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