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Where Taxpayers and Advisers Meet
CGT on gifted property
We are in our seventies and have owned a holiday home (in joint names) for some 7 years. If we were to transfer the property to our two sons, would any CGT due be payable at that time, or would it be deferred until they sold the property at some future date. Also if either of us were to die within 7 years, would there be inheritance tax implications? Many thanks for any advice.
Re: CGT on gifted property
If the property qualifies as a furnished holiday let, then you have the choice regarding CGT. You can either pay CGT based on market value now, or sign holdover claims to transfer your base costs to your sons.
If it doesn't qualify as a furnished holiday let then the holdover claim is not available.
If you were to die within 7 years then, indeed, inheritance tax does also become an issue. However, how much is payable may be tapered, and could attract business property relief.
Again, it all depends on the precise nature of the property, and you may want to speak to a local accountant for detailed advice. I certainly wouldn't complete such a transaction on the basis of forum advice, particularly where there are uncertainties that will affect the outcome.
If it doesn't qualify as a furnished holiday let then the holdover claim is not available.
If you were to die within 7 years then, indeed, inheritance tax does also become an issue. However, how much is payable may be tapered, and could attract business property relief.
Again, it all depends on the precise nature of the property, and you may want to speak to a local accountant for detailed advice. I certainly wouldn't complete such a transaction on the basis of forum advice, particularly where there are uncertainties that will affect the outcome.
