Gifting Property

Hi there, Me, my mother and another family member (not immediate) jointly own a buy-to-let property. There is no mortgage on this property. My mother and I want to gift this to the other family member. Would there be a CGT implication? Thanks

Hi Nik29,
Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.
As it is not your main residence and if the value of the property has increased since you first acquired it, it is likely that CGT will be due.
More information can be found here:
Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. As it is not your main residence and if the value of the property has increased since you first acquired it, it is likely that CGT will be due - more information can be found here: 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 Not to sure how to reply, just wanted to say Thank You This would be a gift, with no strings attached I would buy it her name. You have to look after your sister after all !

Hi there, I own a property (no mortgage) that I have not lived in for several years. My brother has lived in it since 2015 rent free as we see it as his. I wish to officially gift him the property but can’t figure out via the GOV website on whether there is capital gains tax to be paid in the transfer? As No “gain” has been made by myself and no financial transaction is to take place. Or capital gains is paid when he sell the property? A separate house was purchased by myself from my mother in which my brother was entitled to half of, so I gifted him my house instead. As we see this house as his, it has only become an issue now that he wishes to sell the house and move on, He is unable to see the property as it’s in my name. This was all done in 2015 with solicitors help but I believe some important admin had not been filed correctly. Can you advise on this unique situation thanks?

Hi Vic,
You can gift it to your husband with no Capital Gains Tax implicatoins.
For stamp duty, you would need to check with the stamp office here:
Stamp Duty Land Tax
Thank you 

Hi My Dad died last year and my mums house has a granny annex. My family will be moving into the main house (it will become our main residence) and she would like to live in the Granny annex - so we can look after her. I know that if she gifts the property 100% to me then she has to pay me a market rent so that it is a gift without benefit & then you enter into the 7 year gift rule. My question is though, can she make me a common tenant as a gift on the deed so I own 70% and she owns 30%. So she retains the granny annex and doesn’t pay rent. Then would her 30% be treated under the resident nil band (subject to changes in the budget in the next month) So she gifts away part of her main residence. She wants to downsize but it makes sense for her to be living next door to us & her grandchildren. Thanks

Hi Reece,
You are the legal and beneficial owner of the property your brother lives in.  
When you gift the property to your brother, you will potentially have Capital Gains tax to pay, using the market value of the property at that time.
The property purchased from your mother is jointly owned and your brother may have Capital Gains tax to pay should that property be disposed of.
Thank you.

Hello, My grandparents gifted their house to my mum and uncle nearly 30 years ago with a clause that they can continue to reside in the property. It has always been my grandparents residence. We are looking at the tax implications of selling before and after they pass. My grandad doesn’t have long left and my nan is considering leaving the property and either renting or purchasing a flat instead. Will there be any capital gains tax to pay on the house, or would they be able to apply for Principal Private Residence relief on this? Thank you

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

I currently live with my partner and we are privately renting. My father who is 62, disabled on PIP,care and mobility owns his house outright approximately £200,000 He would like to sell his house, gift the £200,000 to myself as this would be a partial deposit on a new bigger house, he will then move in with us so we can care for him and his maintenance. Myself and my partner would be obtaining a mortgage for the remaining amount. What inheritance tax implications would this incur now or in future and is this above board? Thanks

My wife and I own a rental property. We wish to gift part of the property to our children. We assume we would be liable for CGT on the increase in value of the portion transferred to the children? Would we also need to allocate a portion of the rental profits (matching the proportion of the property transferred) to the children - which would then be treated as their income from an income tax perspective? There is no mortgage on the property. Would there be any Stamp Duty implications associated with this transfer?

Hi Dab95,
We cannot comment on future events as legislation may change. For current guidance please refer to the following guidance:
Capital Gains Tax: what you pay it on, rates and allowances
Thank you.
 

Hi,
Currently, Inheritance Tax is only due when a person's estate is worth over £325,000 when they die, or if the person who died gave away more than £325,000 in gifts in the 7 years before they died.
You can find out more information here: Work out Inheritance Tax due on gifts
Thank you.

Hi, M_123,
Yes as they would then be legal owners they would be liable for their share of the rental income.
If they want to exempt from this, a declaration of trust would need to be submitted showing that you and your wife are still the beneficial owners of any rental income received.
For stamp duty please refer to Stamp Duty Land Tax
Thank you.

I am a British citizen but been living in Hong Kong most of my life. My son who has recently finished university would like to borrow money from me to purchase his first property in the UK. This would be drafted up as a loan between my wife and my son and would need to be paid back after a set period of time. Please can you let me know if this contract needs to be drawn up through a solicitor or just between ourselves, and could you also let me know if he would need to pay tax on the money we loan him and if so, how this is calculated.

My daughter and I both reside at a property which we own as Tenants in Common. I wish to gift her a further % share and would be grateful for guidance on how detailed a valuation is needed at this point so that we may rely on it for IHT purposes should I die in the next 7 years. Thank you

Hi Deepsea,
There is no tax due on cash gifts so the contract is a personal choice and up to you if you wish to do this through a solicitor.
Thank you.

Hello. I am a planning to gift a house to my sister. She has lived in house for a few years. Will we have to pay tax.

Hi AC1954,
You will need to obtain a formal valuation from an estate agent and then take half of that as your share.
Thank you.

Hi, If I want to gift my property to my child to avoid inheritance tax is their an age limit? My daughter is only 5. Regards