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Where Taxpayers and Advisers Meet

CGT on gift of property

mark10
Posts: 2
Joined: Tue Sep 29, 2015 12:24 pm

CGT on gift of property

Postby mark10 » Tue Sep 29, 2015 12:54 pm

Hi there, just hoping someone can give me a few quick pointers as all the information I read seems to say different things and I'm completely new to all this!

In short my mother and father need to get their house out of their name. Looking at the options gifting the property to me via land registry and changing the title seems the best way.

They bought the house for roughly £40,000 in 1983, have lived there ever since and the house is now worth £330,000, mortgage fully paid.

Assuming the form is sent and the house is now in my name, I would expect them live there for another 20 years until I would sell it.

Am I right in thinking:

a) They would pay no CGT as it has been their main home all of the time
b) When I come to sell it the CGT due would be the increase in value of the property.
e.g. 2015 £330k 2035 £400k = CGT due on £70k?

If I was to make the house my main residence and also live there then no CGT would be due on sale?

Thanks very much for any reply!

DCF
Posts: 36
Joined: Thu Mar 19, 2015 12:31 pm

Re: CGT on gift of property

Postby DCF » Tue Sep 29, 2015 1:19 pm

Am I right in thinking:

a) They would pay no CGT as it has been their main home all of the time YES
b) When I come to sell it the CGT due would be the increase in value of the property. YES
e.g. 2015 £330k 2035 £400k = CGT due on £70k?

If I was to make the house my main residence and also live there then no CGT would be due on sale? YES ALONG AS IT IS YOUR MAIN RESIDENCE THROUGHOUT YIUR PERIOD OF OWNERSHIP>

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

Re: CGT on gift of property

Postby King_Maker » Tue Sep 29, 2015 3:13 pm

With the correct paperwork, it could be possible that no CGT would be due on disposal of the property even if it was NOT your main residence. You would need to consult your solicitor.

However, such a transfer may not be effective to avoid care home fees if this is relevant.

mark10
Posts: 2
Joined: Tue Sep 29, 2015 12:24 pm

Re: CGT on gift of property

Postby mark10 » Thu Oct 01, 2015 8:47 am

Thanks very much for the replies.

Looks like the CGT won't be that hugh if at all. Now to try and work out how to fill out the Land Registry forms to change the titles :lol:

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

Re: CGT on gift of property

Postby Peter D » Thu Oct 01, 2015 9:42 am

Why do your parents want to gift the property out of their names. Regards Peter

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford
Contact:

Re: CGT on gift of property

Postby Ian McTernan CTA » Mon Oct 05, 2015 12:24 pm

This: they NEED to get it out of their name.

Explain. Sounds like you or they are trying to avoid something, and until we know what that NEED is, sensible people won't advise on the situation.
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com


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