Gifting Property

I am a non resident and a non citizen who has a property in the UK. I would like to gift it to my daughter who is also a non resident and non citizen. Does the 7 year rule apply in this case. Also would I have to pay Capital Gains Tax now or when she sells it. Thank you for your kind advice.

Hi akbarusmani,
This would be seen as a sale and it is you who would pay the Capital Gains Tax at the time of gifting.
As it is a UK asset, yes it falls within the Inheritance Tax 7 year rule.
Thank you. 

When gifting a property to a child, what evidence for deemed sale price is required to be submitted to HMRC? A valuation by an estate agent, or sale price for a similar property taken from Rightmove? Please provide valuation method acceptable to HMRC.

Hi
A valuation by an estate agent.

If a mother gifts her house to her son, and then moves in with her son (no longer resides in said home) but dies within (less than) 7 years since gifting the house, will the threshold of any inheritance tax to be paid be £500,00 (as it would be if the mother died whilst still occupying the house) or would it be £325,000?

Hi I am reviewing inheritance planning options with my parents and looking into how best to handle their main residence which they own without a mortgage. I have always lived with my parents and understand that if they were to gift their home to me in it's entirety, they would either have to move out and never return or pay market rent for their share/use of the house/bills for at least 7 years to ensure that the property is exempt from inheritance tax (so to ensure this is not considered a gift with reservation), is this correct? ? However, from the HMRC website, I also understand you do not have to pay rent to the new owners if both the following apply: you only give away part of your property the new owners also live at the property Therefore, can you please advise that as I live with my parents and always have, would I be eligible for this should my parent wish to gift the property to me? What is considered part of a property? For example, if my parents have 1 bedroom within a 5 bedroom house, could they gift away 80% (4/5) of the property without having to pay rent at market rate and only 20% of this property being included within their estate for inheritance tax reasons? Thanks in advance

Hi treezbee,

You can see guidance here:

Passing on a home

If you die within 7 years of giving away all or part of your property, your home will be treated as a gift and the 7 year rule applies.

Thank you.

Hi greek_scouser,

Please contact the Inheritance Tax team for advice.

Inheritance Tax: general enquiries

Thank you.

Hello, If I were to gift my main residence to a family member who will subsequently move into that property and use it as their main residence what would the tax implications be on this? Would it qualify for relief? Many thanks

Hi,

As it is your main residence there will be no capital gains. However, if you were to pass away within 7 years then the house will form part of your estate for inheritance tax purposes.

Thank you.

Hi My mum is looking to transfer the deeds of her property to me the value is roughly 180k, she will still be living in the property. If we choose to then sell the property in a few years will I have to pay capital gains?

My parents wish to downsize and they have decided to sell their property and gift me their proceeds. I plan to purchase a Buy-to-Let property with the gifted money and then rent it to my parents. What are the IHT implications?

My parents have a second property abroad in Israel which they wish to gift to my brother. What are the tax implications both from an IHT position and a CGT position?

Hi,
Please contact the Inheritance Tax team for advice.
Inheritance Tax: general enquiries
Thank you.

If I were to buy a retirement home for my sister who lives and is a citizen of uk what would be the tax implications for her, she is on a uk pension. I live in Australia and am a uk citizen and an Australian citizen.

Hi Our Daughter has moved back into our Main Residence and it has become her Main Residence We would like to gift her 48% of the home. The house is Mortgage free with a value of £450K As the house will continue to be our Main Residence as well as our Daughter’s Main Residence my understanding is that CGT won’t have to be paid. However what are the Inheritance Tax implications? Kind regards Four J

Hi there, I have recently purchased (no mortgage) a house in the UK (I am a UK citizen), is it possible to gift half of the house to my UK non resident husband, who is still living in New Zealand without having to pay Capital Gains Tax or Stamp Duty, or alternatively should I wait until he has been approved for his Spousal Visa before gifting and adding him onto the property deed? Thank you

Hi Amy33,
If it is not your only and main residence then yes - Capital Gains Tax: what you pay it on, rates and allowances
Thank you.

Hi Gerard, There are no tax implications for your sister but you may be liable to tax if you are charging her rent. If you buy the property and gift it to her you may be liable to capital gains tax Thank you

Hi fourj,

If the person(s) who have bestowed a gift continues to use that asset it in the 7 years before they die it is seen as a 'gift with reservation of benefit'. For further details on this please see the guidance here:

Work out Inheritance Tax due on gifts

Thank you.