CTG when selling gifted property

[Phantom1987]

Hi, i was wondering if someone could comment/share their views.
I own a property which is my main residence for the whole period i owned it. Now i am buying a new property which will become my main residence going forward. I am transferring the first property to my mother, she is not a resident in the UK and she will rent it out. I am transferring it to her as a gift, nil consideration. The property has gone up in Market Value since i bought it, so as far as i understand, even if i transfer to her at nil consideration, we do report the current market value to the Land Registry at the time of transfer?

The main concern/unclear point: If my mother is to sell this property later on, given this won't be her main residence, she would be subject to CTG. How will this CTG be calculated: from the market value we reported to Land registry at the time of transfer? Or from the value i paid for the flat when bought it 4 years ago? or zero to market value the flat will be at the time she sells it (zero is based on the fact that i transfer it to her now at nil consideration)?

Your comments are greatly appreciated.

[bd6759]

The answer is the same as last year, when you were proposing a "gift" to your father. The property is transferred at market value and this is the "price" for both the donor and the donee.

Your biggest problem might be convincing the authorities that you have really given up your interest in the property.

[AdamS93]

Transfer of assets abroad anti-avoidance legislation?

What are you trying to achieve? There is quite a lot of compliance work for a non-resident landlord.

Seek professional advice.