This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Property transfer to sister

cats
Posts:2
Joined:Thu Mar 16, 2017 11:36 am
Property transfer to sister

Postby cats » Thu Mar 16, 2017 11:54 am

Hi my sister & I jointly own a property, value at purchase 50k, value now 150k. It hasn't been the principal residence for either of us. We are thinking of selling it, my daughter & her partner are interested in buying it. I am tax resident in France & believe I won't have any cgt to pay in the U.K., but will in France, currently about 34% with social charges. Can I gift my share instead to my daughter, will she incur any taxes? Or gift to my sister who is a basic rate taxpayer, if she then sells it what will she be liable for?
Thank you.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Property transfer to sister

Postby maths » Thu Mar 16, 2017 7:00 pm

As a non-UK resident you are exposed to UK CGT on any gain made on making the gift. However, any such gain is basically the difference between the value of your share as at 6 April 2015 and its market value at the date of the gift. This applies whether you gift to daughter or sister. The rate is 18% and/or 28%.

Your sister, is liable to CGT on any gain she makes on gifting her share of the property.

cats
Posts:2
Joined:Thu Mar 16, 2017 11:36 am

Re: Property transfer to sister

Postby cats » Sat Mar 18, 2017 1:36 pm

Hi thank you for your reply. Another query, can I dispose of a part share of my house to daughter now in this tax year, if so how do I declare it, I can't use the beta service for partial disposal. I will keep a share to dispose of later, or will it be carried forward to be treated as one disposal. I am not liable to pay any cgt in the uk, but have to pay in France so it may be beneficial to have 2 smaller gains rather than 1 larger gain. Thank you.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Property transfer to sister

Postby maths » Sat Mar 18, 2017 5:10 pm

I am not liable to pay any cgt in the uk
Why?


Return to “Capital Gains Tax, CGT”