I was hoping someone could advise on this - in May last year (in 2012 tax year) i gifted a share of my rental property to my son, so both he and i had a share in it (70/30 %) under tenants in common title . i enquired with my bank and they had no objection, and that they would add his name to our mortgage and subsequently need to amend record of named persons on the banks Charge at Land Registry. Once the bank had provided me with the paperwork, my solicitors processed the change in title with Land registry, it was all logged at Land Reg by i think november 2011.
My question is for paying the CGT on the gift- seeing as there is no 'exchange or completion' of contract or monies paid or received for the house -is the effective date for the gift when i agreed to give it to my son in May? Obviously it is quite pertinent because before june the cgt tax rate was at a 18% flat rate
Effective date for CGT on a gift
4 posts • Page 1 of 1
Effective date for CGT on a gift
by NeilH on Sat Feb 04, 2012 7:59 pm
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Re: Effective date for CGT on a gift
by NeilH on Sat Feb 04, 2012 8:01 pm
Sorry that should read - gift was in May 2010 - 2010/11 tax year
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Re: Effective date for CGT on a gift
by mullet on Sat Feb 04, 2012 8:24 pm
CG14260
The date of a disposal by gift (including a gift in settlement) is the date when the beneficial ownership passes. To be effective the transfer must be in the form required by general law for the particular type of asset.
CG14262
It was possible for all contracts in respect of land to be oral up to 26 September 1989. With effect from 27 September 1989 onwards, however, the Law of Property (Miscellaneous Provisions) Act 1989 requires all contracts in respect of land in England and Wales to be in writing.
Was there a written agreement? When did beneficial ownership pass ... i.e. from what date did your son consider himself as a co-owner of the asset? From what date did he start to declare the income from the property?
The date of a disposal by gift (including a gift in settlement) is the date when the beneficial ownership passes. To be effective the transfer must be in the form required by general law for the particular type of asset.
CG14262
It was possible for all contracts in respect of land to be oral up to 26 September 1989. With effect from 27 September 1989 onwards, however, the Law of Property (Miscellaneous Provisions) Act 1989 requires all contracts in respect of land in England and Wales to be in writing.
Was there a written agreement? When did beneficial ownership pass ... i.e. from what date did your son consider himself as a co-owner of the asset? From what date did he start to declare the income from the property?
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Re: Effective date for CGT on a gift
by maths on Sun Feb 05, 2012 8:02 pm
Beneficial ownership not legal ownership is important for CGT purposes.
A beneficial interest in land must be evidenced in writing although not as such effected in writing.
How did you do this and what evidence is there that the gift took place?
A beneficial interest in land must be evidenced in writing although not as such effected in writing.
i gifted a share of my rental property to my son
How did you do this and what evidence is there that the gift took place?
- maths
- Posts: 4488
- Joined: Wed Aug 06, 2008 3:25 pm
4 posts • Page 1 of 1
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