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Posted Sat, 26 Aug 2023 20:10:22 GMT by
I inherited the property from my parents in 2016 and am the sole owner, but the deed is still in my parent's name and needs to be transferred. My adult child has been living in the property for a number of years and I want to gift them the propery. I know this will mean no inheritence tax is paid provided I live another 7 years after gifting. My question is, will CGT still be due if I gift them the property either by transferring into their name or by placing in trust, given that it is their main residence? I found the following advice, which seems to say no CGT would be due. but I'm not certain if this is accurate: "If you are gifting a property which isn’t your main residential property, you may face a Capital Gains Tax (CGT). [...] if your child or partner is not living at the property when you gift it to them, but the property increases in value by the time they sell it."
Posted Fri, 01 Sep 2023 06:15:59 GMT by HMRC Admin 25 Response
Hi HMBTRFM,
Yes, you will still be liable to Capital Gains Tax if it has not been your main residence since 'purchase'.
Giving it as a gift is only tax free when it is a spouse/partner
Capital Gains Tax: what you pay it on, rates and allowances
Thank you. 

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