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

Ewunia
Posts: 3
Joined: Tue Sep 08, 2015 4:08 pm

Property transfer

Postby Ewunia » Tue Sep 08, 2015 4:32 pm

Apart from a 3 bedroom flat together with my husband we own a studio flat that we would like to partially gift to our daughter. Although we own it 50/50 my husbands shares are " cheaper" for us taxwise as he has been living in the studio for 11 out of the 18 years since we bought it.
With our planned transfer operation could we specify that we wish to gift his entire share bulk and my 10%? Or do we have to say that we wish to gift 60% and then the CGT is from 30% of share each of us?
We bought 18 years ago for £ 66 000 and now the value is about 300 000! No mortgage on the property.
Please advise

King_Maker
Posts: 6538
Joined: Wed Aug 06, 2008 3:22 pm

Re: Property transfer

Postby King_Maker » Tue Sep 08, 2015 6:10 pm

Why is your husband's share "cheaper"?

Is he in a lower tax band to you?

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Re: Property transfer

Postby Peter D » Tue Sep 08, 2015 7:09 pm

As a married couple you can not own two Principle private residences. Have you made an election as to which one is your PPR. Regards Peter

Ewunia
Posts: 3
Joined: Tue Sep 08, 2015 4:08 pm

Re: Property transfer

Postby Ewunia » Tue Sep 08, 2015 7:25 pm

Although not formally divorced we have been living separately for 11 last years and this separation is permanent. My husband's electoral registry documents, his council tax, driving licence etc document this fact. Having said that he did not notify HMRC about his change of main residence but we can document the actual situation. Therefore we believe that his CGT will be much lower than mine.

LozaACCS
Posts: 1504
Joined: Wed Aug 06, 2008 3:55 pm

Re: Property transfer

Postby LozaACCS » Tue Sep 08, 2015 8:28 pm

Assuming your ex occupies the flat as his main residence PPR may be available on his disposal.
You appear to hold the property as TIC so you are free to dispose of your respective shares as you wish, however you do it you should negotiate a tenanted discount, (10 to 15%).
I do wonder whether gifting such a valuable asset to your daughter is a sensible route to take, have you considered protecting her interest by gifting into trust.

Ewunia
Posts: 3
Joined: Tue Sep 08, 2015 4:08 pm

Re: Property transfer

Postby Ewunia » Tue Sep 08, 2015 9:06 pm

What advantages would we have by gifting the property into a trust?

LozaACCS
Posts: 1504
Joined: Wed Aug 06, 2008 3:55 pm

Re: Property transfer

Postby LozaACCS » Wed Sep 09, 2015 7:54 am

The property could be at risk in any bankruptcy or divorce proceedings, a trust arrangement will avoid such risks.


Return to “Property Taxation”

cron