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Where Taxpayers and Advisers Meet
Gift of overseas property
-
Confused987
- Posts:1
- Joined:Thu Oct 30, 2008 12:47 pm
Dear Experts. I have a very complicated and taxing question. I own 50% of a property in Europe. My ex-wife owns the other 50%. I am non resident in the UK but wish to "gift" my share to my UK resident nephew. What would be the tax implications for him receiving my share as a gift? Would he be lible for CGT if he sold it? Would it be more beneficial to "sell" it to him for a nominal sum? Your advice would be greatly appreciated. Thank you
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JSK TAXATION
- Posts:200
- Joined:Wed Aug 06, 2008 2:18 pm
Confused987
The three issues you should focus on are:
the tax position of the gift in the country where you are resident - both CGT and IHT,
the IHT position in the UK if you are UK domiciled, and
the tax position of your nephew in the UK should he sell it.
As you do not indicate where you are resident, it is not possible to answer the first point.
If you have retained a UK domicile, the gift of the property will be a potentially exempt transfer of part of your estate in the UK even though you are non-UK resident.
Your nephew will be treated as receiving the property at its market value for the purposes of CGT in the UK if he decides to sell in the future.
Hope this helps.
John S King
Chartered Tax Adviser
www.taxation-advice.com
The three issues you should focus on are:
the tax position of the gift in the country where you are resident - both CGT and IHT,
the IHT position in the UK if you are UK domiciled, and
the tax position of your nephew in the UK should he sell it.
As you do not indicate where you are resident, it is not possible to answer the first point.
If you have retained a UK domicile, the gift of the property will be a potentially exempt transfer of part of your estate in the UK even though you are non-UK resident.
Your nephew will be treated as receiving the property at its market value for the purposes of CGT in the UK if he decides to sell in the future.
Hope this helps.
John S King
Chartered Tax Adviser
www.taxation-advice.com
John S King
Chartered Tax Adviser
e: help@taxation-advice.com
w: http://www.taxation-advice.com
01732 897850
Chartered Tax Adviser
e: help@taxation-advice.com
w: http://www.taxation-advice.com
01732 897850
