IHT & Capital gains

[Asvsix]

Mr A owns 2 properties P1 and P2.

Mr A bought P1 in 1996 and lived there till 2010 (14 years). It was then rented from 2010 to 2018 (8 years). He moved back in September 2018 to date. He wants to gift the property to his son. Would there be any IHT or capital gains?

He bought P2 in 1987 and lived in it till 1996 (9 years). The property was rented from 1996 till 2018 and it has been empty since then. He wants to sell the property now, will there be capital gains tax?

[bd6759]

P1. CGT payable based on market value at time of gift. There will be reliefs. Reliefs are time apportioned. At the very least around 14 years will be exempt (but you’ll need to work it out in months). There may be more, depending on reasons and intentions for moving back in and selling.

P2 . Again, CGT is payable, but around 9 years (worked on in months) will be exempt, as will the last 9 months of ownership.

In both cases the burden is on you to prove that you occupied it as a residence. Hope you have kept evidence.

[Asvsix]

bd6759,

Thank you very much.