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Posted Mon, 18 Nov 2024 13:24:05 GMT by R Kumar
I purchased an aprtment in India 10 years back when I was not a UK resident. I am a UK resident (but Indian citizen) for the last 2 years (on a skill worker visa). This aprtment was my principal home before moving to the UK and has been rented out for the last two years. If I gift this aprtment to my father (who is an Indian citizen and lives in India), will I have to pay any tax in the UK. Thanks.
Posted Fri, 22 Nov 2024 13:40:36 GMT by HMRC Admin 20 Response
Hi,
Possibly, yes, as you have rented out the property and private residence relief will not cover this period.  
If you gift the property to your father, you would need to obtain the market value of the property at the time of gifting and convert the value to pounds sterling.  
You will also need to do the same for the value at which you acquired the property.  
Helpsheet HS283 (HS283 Private Residence Relief (2024)) will help you work out how much private residence relief you can claim.  
There is a capital gains calculator (Tax when you sell property) to help you work out the gain.  
It should be reported in a self assessment tax returns on supplementary page SA108.  
If you had to pay capital gains tax in India, you can claim a credit for this in SA106.
Thank you.

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