Capital gains & gifting property

We are pensioners and own a property that we rent out as a buy-to-let as a source of income. The intention is/was for my son to inherit this property. His present circumstances are he would benefit from having the proceeds from the property now. If we gifted the property to him now and he sold it straight away, what are the tax implications if any for us and him. Also as we would lose the income from the rental is he allowed to help with. Regular payments to help with living costs (we found this info online). “There's no inheritance tax liability should you help loved ones with everyday living costs. This could mean sending a monthly payment to an elderly parent, former partner or child under 18-years-old. Again, there's no limit to how much money you can give but your gift must not affect your standing of living”. Is this information we found correct? Doing this would not affect his standard of living as the proceeds would have gift sale would make him mortgage free. Thank you.

Hi Telw12,
There is the possiblity that disposing of the property or gifting the property to your son, will result in you, your husband / wife / civil partner, being
liable to capital gains tax on the disposal / gifting of the property.
If you die within 7 years of gifting the property to your son, the property can be added to your estate for inheritance tax purposes.  
Please have a look at the guidance at
Tax when you sell property, How Inheritance Tax works: thresholds, rules and allowances and Inheritance Tax: general enquiries.  
If your son disposed of the property immediately after it was gifted to him, he may be liable to capital gains tax if the disposal value is greater than the market value of the property at the time it was gifted to him.  
There are no tax implications on the giving or receipt of cash gifts, however, if the cash gift generates income, such as dividends or interst, then the income will be taxable.
Thank you.

You say: “There is the possiblity that disposing of the property or gifting the property to your son, will result in you, your husband / wife / civil partner, being liable to capital gains tax on the disposal / gifting of the property”. Q: How would capital gains be due? We paid £250k for property 10 yrs ago say it’s now worth £325k & we gifted son the property & he immediately sells for 325k, who would pay capital gains & why? Thank you

Hi,
The person gifting the property would be liable for the gain on the difference in value. if it has been your only and main home for the whole period of ownership, no gain will be due:
Capital Gains Tax: what you pay it on, rates and allowances
Thank you.

Hi, If i gift a property (2nd property/not main residence) to a Limited company, the property has no mortgage on it. Will there be capital gains tax to be paid by myself? The property has increased in value over the years. Or will the Limited company have to pay Stamp Duty at the market rate of the property? Thanks

Hi StrangerH,
The transfer of the property to the company would be regarded as a disposal.
A Ltd company is treated as any entity in its own right.
There would be a deemed disposal of the property by the you and CGTPPD may apply if there is a gain and liability due.
However, you may consider a claim to relief if appropriate.
TCGA92/S162 Transfer of a business to a company,
Please  see CG65700
CG65700 - Transfer of a business to a company: introduction and interaction with other reliefs
Onwards and HS276:
HS276 Incorporation Relief (2024) Roll-over relief on transfer of a business
Or Gift Holdover Relief
CG66450 onwards and HS295:
HS295 Relief for gifts and similar transactions (2024)
CGTPPD return will not be required if nil liability arises, but entry on Self Assessment tax return and claim for the relief will be required. 
Thank you.

 

Hello, I have owned my house since 1979. I am lived in it as my main and only residence since then and I fulfill every condition here for Private Residence Relief: https://www.gov.uk/tax-sell-home. I want to deed in gift it to my son. I understand I will not be subject to CGT given Private Residence Relief. However will he? If he were to sell for the market value soon after the gift. How will CGT be calculated given the difference in value between 1979 and 2024? Thank you

Hi,
There will need to be a value applied at the time of transfer and this would be the purchase price for any future sale. If there has been an increase then, yes, CGT will be due on your son.
Thank you.

Hi, If a couple of BTL properties have been gifted (at £1 only) into a limited company belonging to my son on which I've paid the appropriate CGT based on market value. Should he decide to sell them in a few years, would he be liable on the CGT based on the market value minus the value at the point of transfer or would it be market value minus £1? Thanks

Hi Shahm,
HMRC cannot comment on future events but on current guidance, it is the market value at the time received for your 'purchase' price.
Thank you.