CGT on transfering of property

[d3ath]

I brought a house for my parents to live in, i have a buy-to-let mortage. can i transfer / sell to them at the price i purchased it for, and avoid CGT as i would not be making anymoney on this.

[James Smith]

d3ath

As a "connected" person to your parents any transfer would be at market value so CGT may be applicable depending on the values etc.

Generally speaking it is advantageous for the persons living in the property to own it, however in some circumstances the reverse is true if your parents have substantial other assets and may pay IHT. It is worth a quick look around at some of the other questions to see the results of DIY planning in this area, I would strongly urge to to take appropriate advice before making any transfers, I donÂ’t say that to try to get a fee (it is actually a lot more profitable to sort out a subsequent mess!), but because I often see the results of people trying this sort of DIY planning and it often ends up being very costly.

Regards,

James Smith
Chartered Accountant
www.jamesesmith.co.uk
01284 764436