CGT on nil value transfer between family members

[Seabass888]

Basically my gran and auntie own 50:50 of the house me and my mum live in. We're looking at transferring the property to mr, 100% over the next two years. For CGT, will I have to pay CGT on the nil value transfer and the deemed value will be the market value, am I correct?

Purchase price was £230k and current market value is about £310-315k.

On the £80-85k, 'profit' in guessing there will be CGT implications?

Also, as I am due to only receive 50% ownership this year and 50% next year, will the CGT bill be split between these years? (Obviously the market value will also change slightly in that time)

Many thanks for all responses

[bd6759]

CGT is paid when you dispose of an asset. You are not liable to any tax on the acquisition of the house, however your gran and aunty might be,

[Seabass888]

CGT is paid when you dispose of an asset. You are not liable to any tax on the acquisition of the house, however your gran and aunty might be,

I would probably be asked to pay it on their behalf, am I allowed to do that? Or would I need to send them money, and if I did something like that would they then be liable to pay income tax on it? Or can I pay the revenue directly their tax bill?

[AnthonyR]

You would effectively be gifting the money to them, which doesn't have income tax consequences, but may have IHT consequences if you die within 7 years (it's treated as added back to your estate).

[someone]

The CGT is charged in the year that the disposal happens. So yes, if you do it over two (tax) years then the CGT bill will be split.

Assuming your gran and auntie both have no other disposals then they will each have a 11K CGT allowance. Not sure how you're intending to do the two transfers but if each give 25% (half of their respective share) in each tax year then there will be four lots of CGT allowance to reduce the CGT bill.

Have either of them ever lived in the property as their main home? If so that will reduce their CGT bill further.