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Where Taxpayers and Advisers Meet

sell house to son at below current price

TheShariff
Posts:2
Joined:Sat May 27, 2017 11:22 pm
sell house to son at below current price

Postby TheShariff » Sat May 27, 2017 11:39 pm

Hi All
Can I sell my house to my son at any price I wish, as I own the property, mortgage paid off....or is there rules I need to follow?
Do I need to be aware of CGT or IHT or stamp duty in this instance, and would it minimise any other expenses keeping price to well below current selling price.
Partly selling cheap as its a gift but putting some price on it so he has some taste of having a mortgage and responsibility of being an adult.
ANY HELP APPRECIATED. Thanks Jay

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

Re: sell house to son at below current price

Postby maths » Sun May 28, 2017 5:11 pm

In short "yes".

However, the sale at undervalue or a gift is treated as having been made at market value for capital gains tax purposes.

However, for SDLT purposes SDLT is levied on any consideration paid (ie no market value imputation).

Inheritance tax only applies to gifts. So, for example, house worth 200k and son buys for 50k. You are deemed to have made a gift to son of 150k.

Did you, or are you currently, living in the property?

What's market value?


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