From: "tim" <520010973502.removethis@t-online.de>
Newsgroups: uk.finance
Subject: Re: Advice for a 1st time buyer please
Date: Thu, 21 Oct 2004 22:46:54 +0200


"cliptomaniac"  wrote in message 
news:f2daa613.0410210716.2bcd38b0@posting.google.com...

> i could get stung with inheritance tax.

This is a complete red herring.

a) If your mum already has the money, you'll get stung for the tax
anyway.

b) If she doesn't have the money and the house price doesn't go up
much, the bit that you inherit is cancelled out by the loan you will also
have inherited. (Note that you don't normally inherit debts but if it's
secured on the property and you want to keep same you'll have to
take over the loan)

c) If the house price goes up by enough to put the amount of money
you inherit into the IHT range (exceptionally unlikely) you'll have to
pay tax.  But, this is money that you wouldn't have at all if you didn't
buy the house so you'll still be better off by the 60% you get to keep.

tim