Reporting Property Gifted Abroad

Hello HMRC, My parents have transferred some property in my name in Pakistan. Approx value is £100,000. Can you pls help with following questions: 1. Do I need to report this at this stage to HMRC? 2. If answer to above question 1 is Yes, then do I need to report through self-assessment or some other way? 3. If I sell the property at a later stage and my parents are alive at that time, do I have to pay Capital Gain Tax at that time? And how does it change otherwise? Thanks a lot.

Hello HMRC, looking forward to response on my above question. Thanks..

Hi,

You do not mention where your parents are resident. If they are resident in Pakistan, then they have no UK tax implications.  

If they are resident in the UK, then they may have a Capital Gains Tax liability arising from the gifting of the property to you. This would be declared in a Self Assessment tax return.

You, as a UK resident, would need to note the market value of the property at the time it was gifted to you, so that you can offset this against the disposal value, if and when you dispose of the property, as you may have a foreign Capital Gains Tax liability, which would be declared in a Self Assessment tax return. You can see guidance here: 

Tax when you sell property

Thank you

Thanks a lot for your reply .. So my parents are in Pakistan. So no implications for their UK taxation. For me, you said I will declare the Capital Gain Tax in my Self Assessment. But that will be when I sell the property. right ?? So going back to my questions that; Do I need to report this "at this stage" to HMRC? Is the answer that I do not need to report it now? Thanks again.

Hi Ahmad A 

Yes, a capital gain will arise if/when you sell the property and there is no need to report it now. if the property is being let, you need to report any rental income received,

Thank you