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Where Taxpayers and Advisers Meet

Gift a commercial property

Shakil
Posts: 3
Joined: Wed Dec 18, 2019 3:06 pm

Gift a commercial property

Postby Shakil » Wed Dec 18, 2019 3:15 pm

Good afternoon.
I would like to know if i gift my commercial property to my daughters limited company as i have no connection to her company will i be paying cgt and how will i vaule the cost of the property as i inherited from my late husband 30 years ago and land registry has no records of how much my late husband bought 40 yrs ago.
Thank you.
Shakil

jerome.lane
Posts: 224
Joined: Mon Aug 12, 2019 8:41 am
Location: Sandhurst, Berkshire
Contact:

Re: Gift a commercial property

Postby jerome.lane » Wed Dec 18, 2019 4:22 pm

You are connected to the company by virtue of the family relationship, so CGT and SDLT will be in point.

Your base cost is the probate value upon your late husbands death.

If the property is used in a business, then there are reliefs available.

You may be able to structure this with no immediate tax implications.

Please do give me a call if you wish to discuss in more depth.
Jerome Lane
Tax Adviser
Telephone: 07943 005902

Jane Evans
Posts: 1
Joined: Wed Dec 18, 2019 10:20 pm

Re: Gift a commercial property

Postby Jane Evans » Wed Dec 18, 2019 10:22 pm

Beware, a gift to a company is a chargeable lifetime transfer for IHT. This type of gift is generally best avoided.

Shakil
Posts: 3
Joined: Wed Dec 18, 2019 3:06 pm

Re: Gift a commercial property

Postby Shakil » Thu Dec 19, 2019 12:29 am

Thank you for the replies.The value of the property is less than our IHT threshold between me and my late husband so can i sell at nil value and just pay cgt and sdlt .
Beware, a gift to a company is a chargeable lifetime transfer for IHT. This type of gift is generally best avoided.

Jerome_Lane
Posts: 25
Joined: Mon Jul 22, 2019 10:13 am
Location: Camberley, Surrey
Contact:

Re: Gift a commercial property

Postby Jerome_Lane » Thu Dec 19, 2019 9:48 am

Since such a gift is a chargeable event for CGT, the IHT CLT is easily turned into a PET with a little bit of basic planning.
Jerome Lane
Tax Advisor
jerome.lane@stewartco.co.uk
Stewart&Co.
Chartered Accountants
Telephone: 01276 61203

Shakil
Posts: 3
Joined: Wed Dec 18, 2019 3:06 pm

Re: Gift a commercial property

Postby Shakil » Thu Dec 19, 2019 10:21 am

Good morning.If the gift is valued at £160000 and my daughter developes the property and land her company has recieved from me and within 7 years the value increases due to developement of more flats to £1m after constrution cost and i dont survive at which value iht is payable todays value or the value after it is developed ..
Since such a gift is a chargeable event for CGT, the IHT CLT is easily turned into a PET with a little bit of basic planning.


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