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Where Taxpayers and Advisers Meet

capital gains tax

tec jones
Posts:1
Joined:Mon Feb 25, 2019 12:17 pm
capital gains tax

Postby tec jones » Mon Feb 25, 2019 12:22 pm

I transferred 10% of my rental property to my son, which value do I use, is it cost price value or valuation at time of transfer, I have now sold the property.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: capital gains tax

Postby AGoodman » Mon Feb 25, 2019 8:04 pm

On the sale:

Your cost price is 90% of the price you paid for it plus 90% of capital works etc.
Your gain is 90% of the sale price minus the cost price.

On the gift to your son:

Your cost price is 10% of the price you paid etc
Your gain is 10% of the market value at the time of the gift minus the cost price.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: capital gains tax

Postby maths » Tue Feb 26, 2019 7:46 pm

Strictly speaking you are making a part disposal on making the gift and depending upon the figures a part disposal calculation may be required. It may also be possible to not treat the gift at that time as a disposal,


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