Hi, this is my first post here, so please be gentle with me My husband has an aging father and I have an aging mother. They both live quite a distance from us, but will both benefit from moving closer to us. One idea is to buy a two or three bedroom home so that the two can share, and pay us some sort of rent. We would have to slightly alter the house so that they could have their own space. I haven't thought this all through properly yet of course, but has anybody else done this?

Luigi

Sort of.......

If you allow your Parents to live in your property rent free than no capital gains is payable when you come to sell the house (for what ever reason)
Before you embark on this move seek professional advice from a proper tax consultant because there are tax breaks you need to consider.
Ask your question on http://residentiallandlord.ipbhost.com/index.php?showforum=2 where tax experts and good solid advise will be available.
Mel.

Sorry to contradict you Mel, but dependent relative relief was abolished some years ago and now only applies where the property was occupied by the dependent relative prior to 6 April 1988. If luigi62 buys a house for occupation by his relatives then CGT will be potentially payable upon the eventual sale irrespective of whether or not rent was charged. Income tax will be payable annually in respect of any rent received (after allowable expenses).

Are you saying I am out of touch Susie?
Was it that long ago I looked into it?
Where have you been anyway?
Mel.

Thank you for your replies. This is only in the 'thinking about' stage at the moment, so we will of course do plenty of research before we make a decision.