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Where Taxpayers and Advisers Meet

Joint owned commercial business unit - transfer shares as a gift

Jc124
Posts:1
Joined:Wed Mar 24, 2021 2:19 am
Joint owned commercial business unit - transfer shares as a gift

Postby Jc124 » Wed Mar 24, 2021 2:24 am

Hello,

I jointly own a commercial business unit (fish&chip shop) with my mother, she originally owned it with my dad but he had given me his share over 10 years ago. We own the freehold and it’s currently let out to a tenant for 25 years with 20 years remaining.

My mum is now wanting to gift me her share of the commercial property and I was wondering what are the CGT implications around this? There will be no money exchanged, would it just be liable for IHT?

Thank you,
Jay

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Joint owned commercial business unit - transfer shares as a gift

Postby pawncob » Wed Mar 24, 2021 11:49 am

The gift will be a disposal at market value for CGT purposes. You'll need a professional valuation for the restricted freehold sale ( and probably to negotiate with HMRC).
With a pinch of salt take what I say, but don't exceed your RDA


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