Selling gifted property in IT

Hi, I am about to sell a property that was gifted to me The sale price barely covers the expenses I undertook to renovate the property. How can I cover this through my taxes? Once the money is received, I will be gifting it to my mother - will this then be subject to tax?

Not HMRC...you are liable on the gain of net sales proceeds less value on recieving gift...and it a gain must report this within 60 days of completon on a CGT return and pay the tax in those 60 days. If any/some/all of the renovation costs are allowable they would be "improvements" and can be shown as additional spending to the value of the gift to work out the gain, but they must be IMPROVEMENT costs, things like repairs/decorating/renewals are NOT allowable for CGT. Gifting to your mother is not relevant, but you must work out and pay the CGT first.

Hi ,
 

You will need to review the guidance at CG15160 owards (  :  CG15100 - Deferred consideration: unascertainable: election for treatment of loss - effect of election under section 279A  ), to determine which, if any part of your renovations, can be set against the gain arising from the disposal of the property.  Gifting the property to your mother is considered to be a disposal of the asset. Thank you .

Uh? HMRC your link is totally irrelevant, section 279a has no bearing to this question and he doesnt say hes gifting the property to his mother, he says hes giving the cash after the sale...on which there would be no tax repercussions, the tax repercussions are on the sale, read the question HMRC.