Transferring Property As a Gift

If I transfer my main residence, my only property which has no mortgage, to my son before buying a new main residence will this avoid having to pay second home additional stamp duty charge ? Also when my son eventually sells it, hopefully many years from now, I assume he will pay CGT as it will be a second home for him. Will the CGT be based on the transfer value when I transfer it to him or will it be based on the original amount I paid for my current house. Does such a transfer have to happen before completion date of my new house or can it be done before 18 months have passed such that I could reclaim the stamp duty that would have been paid on purchase of my new home.

Hi

Capital gains tax is paid on gains arising from the disposal of asset(s) for more that they were acquired for, after costs are taken into consideration.  
Private residence relief can be used to offset the chargeable capital gains where the property was your main residence.  Please have a look at the guidance on stamp duty at Stamp Duty Land Tax, as it may still be payable, evenif you only have one property.

Thank you

If we separate out the taxes mentioned in my question. I believe my son would pay CGT upon selling the property I had transferred to him and that would be based on the value he sells it less the amount I originally paid plus any costs I or he may have incurred in say extending the property during our ownerships. So I think I am clear on that aspect new. As to the first question I asked, would transferring my main residence (my only property with no mortgage) avoid me having to pay the second home additional stamp duty charge - I can't see any guidance that sets this out - maybe I am just missing it. I don't see why I should need to pay a second home charge if I don't have a home when I go to buy a new main residence. Obviously the timing of transferring before I buy a new main residence is more 'sensible' than transferring after I buy a new residence if doing so avoids paying the additional 2nd home SDLT , unless I could reclaim the second home additional SDLT on transferring after but within a certain period. Can you answer that specific point rather than point me to guidance which does not seem to cover this scenario. Thank you.

Hi,

If you were Uk resident when you gifted the property to your son, you would be subject to capital gains on the market value of the property at the time you gifted the property to him - minus your acquisition costs.  

He in turn would be subject to capital gains tax liabiliy if he disposes of the propert for more than the market value he acquired it for.  
He can deduct the costs of improvements to the property, such as extensions, when calculating his capital gains liability.  

As SDLT is not a personal tax, we are unable to provide any advice other than suggest looking at the guidance on stamp duty and land tax below for information on refunds.

Stamp Duty Land Tax

Thank you.