Disposal of a Gifted House

[Andyward]

I think this be straightforward . . .

My Son gifted a house he owned outright to my Wife in 2012 which she now wants to dispose of to fund a house move to a new area - am I right to believe that provided my Son continues to live until at least 7 years after the gift was made there will be no tax liability arising from the disposal in the meantime? Is this correct? Thanks

[Peter D]

What you are referring to if his IHT. Your wife will have a CGT issue on disposing of the property, assuming it has gone up in value. What have you been doing with the property. Regards Peter

[LozaACCS]

You are correct as regards IHT, the gift is a PET (eligible for the AE) and falls out of charge after 7 years, this is supposing that the son does not derive any benefit from the gifted property.

The gift was a chargeable occasion for CGT (the deemed consideration being the market value at that time), hold over relief would not have been available.

[Andyward]

Thanks for the replies - Peter, the house has been rented out since the gifting in 2012 with the income being declared via HMRC online Self-Assessment for my wife. She had a local Estate Agent declare a value at the time of the gift so repeating the exercise on disposal should determine the CGT liability.

Overall, were she to dispose of the asset then provided any capital gain is within her personal allowance and my son survives the gifting by seven years there should be no net tax liability arising from the transaction.

Please advise if I've missed anything.