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Where Taxpayers and Advisers Meet

CGT on transfer of a property to children

DerekMoore
Posts:16
Joined:Tue Oct 29, 2013 5:07 pm
CGT on transfer of a property to children

Postby DerekMoore » Sat Sep 20, 2014 7:23 pm

I have a small number of properties I have purchased over the years which are in joint names with myself and my wife.
I was talking to my accountant and mentioned that in a few more years I would give one to each of the 2 children to get them on the housing market.
I said that provided I survived more than 7 years then there is no IHT due.
She said I would be liable for a CGT charge on the profit based on average values at the time of transfer.
Is this correct as I was under the impression that if I give away capital assets, cash assets, share assets, valuables etc prior to death 7 years later then there is no tax due on the asset.
I would value others opinions on whether my accountant is right or I have got it wrong.

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

Re: CGT on transfer of a property to children

Postby King_Maker » Sat Sep 20, 2014 8:13 pm

CGT applies to disposals - sales and gifts.

Certain assets are exempt - e.g cash, cars etc.

But not properties. As you are "connected" with your children, the disposal will be at MV (Market Value).

DerekMoore
Posts:16
Joined:Tue Oct 29, 2013 5:07 pm

Re: CGT on transfer of a property to children

Postby DerekMoore » Sun Sep 21, 2014 7:45 am

Thanks for the information King Maker.

Much appreciated.


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