Property transfer
A couple helped the husband’s in-laws to buy an ex-council house in 1984. At that time the rule was that the property could only be owned by the tenants so this would appear to rule out any dependent relative relief.
In 2003 the mother-in-law died and the father transferred the property to his son and daughter-in-law. I am told that the property was worth £175 000. The sum of £50 000 changed hands but it was largely a gift.
The father-in-law continued to live there rent free until he died in 2011 and a licence was drawn up to this effect when the property was transferred.
I have the following questions.
- Am I correct in that dependent relative relief is not available?
- Should the base cost be the value at the date of the transfer?
- If the market value was £175 000 should...
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