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Where Taxpayers and Advisers Meet

Avoiding CGT on buy to let property (gifting/pension etc)

Joined:Mon Sep 21, 2015 5:37 am
Avoiding CGT on buy to let property (gifting/pension etc)

Postby earlycomputers » Mon Sep 21, 2015 5:43 am

A couple of quick questions re capital gains tax on a buy to let property - if I give this property to my daughter as a gift (it's mortgage free and I would have no beneficial interest in it), would she still then be liable for capital gains tax if she then wanted to sell this property immediately afterwards?

Also, if I sell a buy-to-let property and immediately put the sale proceeds into a pension for myself or gift the sale proceeds to my daughter, would I then be exempt from paying capital gains tax on this property?
many thanks in advance for any advice

Peter D
Joined:Wed Aug 06, 2008 3:37 pm

Re: Avoiding CGT on buy to let property (gifting/pension etc)

Postby Peter D » Mon Sep 21, 2015 11:44 am

HMRC will deem the gift to your daughter to have been done at the open market value of the property and you will be liable for CGT on the gain you have effectively made. Putting it in a pension does not remove your CGT liability. Regards Peter

Joined:Wed Aug 06, 2008 3:22 pm

Re: Avoiding CGT on buy to let property (gifting/pension etc)

Postby King_Maker » Tue Sep 22, 2015 12:59 pm

CGT is a tax on disposals - which includes gifts as well as sales.

Your gift to your daughter could attract a CGT liability for you. Your daughter may have a Loss, depending on the sale costs.

Paying the sale proceeds as a pension premium is not relevant to your CGT liability - although the tax relief could reduce your CGT rate from 28% to 18% (if applicable).

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