CGT

[mill]

Some years ago my sister and I purchased a house for the use of our parents who lived in it rent free. One parent has recently died and the other has moved into a care home. My sister would now like to move into the house and make it her permanent home.

I am prepared to gift my half to my sister but appreciate there will still be a CGT liability for me on the gift of my half. Is there any means by which this CGT can be kept to the minimum?

[maths]

You could gift your share in tranches over a number of tax years in order to use your annual CGT allowance to reduce taxable gain to nil.

Realise losses to offset against the gain.

[rks2018]

May I ask how this can be done? Thanks

[AGoodman]

To stagger the transfer, you would need to assign a percentage of the beneficial interest in the property each year. This can be done by deed, reciting the original share and stating that A assigns x% to B leaving A with y% and B with z%.

The key is in the valuation (you want the value to be less than the annual exemption (just over £12k) for the year).

The problem comes if the value of the property increases by a large sum each year as it will take a very long time to transfer the whole share.

[rks2018]

Hope original poster does not mind me asking, how is it best to get valuations each year and is there any month in the year its best to do a %transfer by deed please?