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Where Taxpayers and Advisers Meet

Gifting Assets to a Son

oldjohn41
Posts:12
Joined:Mon Dec 01, 2014 10:50 pm
Gifting Assets to a Son

Postby oldjohn41 » Mon Aug 08, 2022 9:53 am

Help please! I am old and I am getting confused between annual gift allowance and the 7-year gift rule! My wife and I own a second house which we currently rent out. We would like to gift it to our son who could then have the rental income (he has health issues). Can we do this? If yes, is it notifiable to HMRC, and is there no tax to pay as long as one of us lives for 7 years? Any help much appreciated!

someone
Posts:689
Joined:Mon Feb 13, 2017 10:09 am

Re: Gifting Assets to a Son

Postby someone » Mon Aug 08, 2022 1:07 pm

There may be capital gains tax to worry about (probably will be unless it was your home for a long period first or you've only owned it for a very short time). If there is then it has to be reported to HMRC and paid within 60 days of the gift.

pawncob
Posts:5089
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Gifting Assets to a Son

Postby pawncob » Tue Aug 09, 2022 9:59 am

Gift will be made at market value, so there may be CGT to pay.
Gift will fall out of estate after 7 years. If you die before then a proportion of the value will be subject to IHT.
With a pinch of salt take what I say, but don't exceed your RDA

oldjohn41
Posts:12
Joined:Mon Dec 01, 2014 10:50 pm

Re: Gifting Assets to a Son

Postby oldjohn41 » Wed Aug 10, 2022 9:38 am

Thanks a lot for the clarification guys!


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