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  • RE: Tfr to an IHT trust of residential property by a non-resident: price for CGT purposes.

    May I ask a follow up on this? - Gift by non UK resident of UK residential property to a UK resident son. What is the situation if the transfer of the residential property is made to a son resident in the UK - and he then uses it as his PPR for say 5 years and then disposes it when its value has increases from 330k to say 500k So we have original purchase cost £100k 6 April 2015 valuation £250k market value at first transfer: 330k with gain of 80k (330-250) held over = > acquisition cost 330-80= 250k market value at second disposal 500k after 5 years' of use as a PPR => so a gain of £250k but the entire period it was a PPR. On what amount is CGT payable? - Finally, is there a difference in CGT treatment if the property is gifted directly or via
  • Loan to adult son to purchase a home

    Hi I am considering making a loan to my adult ason to enable him to buy his own home. I intend taking a charge on the home. Essentially it will be a mortgage from me. At least for the initial period, the interest on the loan will be deferred as he is unlikely to be in a position to pay it. This gives rise to the follwing questions: 1. Am I correct in thinking that I only need to declare the interest income when I actually receive it? and not on an arising basis? 2. I can choose the interest rate ranging from 0 to the current variable mortgage interest rate? 3. What is the tax consequene if I finally end up forgiving the interest - essentially making it an interest free loan. Does it mean that there is nothing to be declared on my tax return. Thanks. I am grateful for your clarification.
  • RE: Tfr to an IHT trust of residential property by a non-resident: price for CGT purposes.

    Thanks for a clear and helpful answer.
  • CGT ON A PROPERTY LLP

    Dear HMRC I have now read on several websites the following suggesting transfer of buy to let property to an LLP: "What Happens To Capital Gains Tax, Stamp Duty, And Refinancing When The Properties Are Transferred To The LLP? This is yet another attractive feature of the LLP structure. There is no need to transfer the ownership because LLPs are tax transparent and members may hold properties “in trust” for the LLP. As a result, there is no conveyancing, no need to refinance, and no CGT or Stamp Duty to pay, as the assets’ ownership need never be changed." This appears to suggest that there is no CGT due if the beneficial interest in a property is held "in trust" for the LLP as there is "there is no conveyancing, no need to refinance, and no CGT or Stamp Duty to pay, as the assets’ ownership need never be changed." Please can you confirm whether this view is correct - wouldn't this amount to a deemed dispoal as the beneficial ownership wil undoubtably change from the previous own to the LLP? Thanks. Joe

    [External website reference removed - Admin] 
  • Tfr to an IHT trust of residential property by a non-resident: price for CGT purposes.

    I am a long term non-resident who has long owned an investment property purchased for say 100k in 1990. Its MV at at 6 April 2015 (the date on which CGT became payable for non-residents) is say 250k. Its market value today is say 330k - so just exceeding the NRB. For IHT purposes, I wish to transfer a residential property to a Trust for my adult child - it is just over the NRB so will pay the 20% IHT on the difference between 330k and 325k. If I understand correctly, the Trust acquires the "Purchase cost" and on a subsequent disposal is liable to CGT on the gain - so effectively the Capital Gain is held over. What is the "purchase cost" in case of a non-resident: Is it the original 100k purchase price or its MV as at 6 April 2015 when non-residents became subject to CGT. Can an election be made to apply the 6 April 2015 value? Thanks