How can I dispose of a property in a cheap tax efficient way?

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  • jpkeates
    If you are the only name on the deeds, in what sense do you "share the property with a family member"?

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  • SnowyDays
    I've looked on the summary of title on the land registry and I'm listed as the only owner. The property has increased in price by around £100K since I bought it. At a push, my relative could probably get a small mortgage.

    Gifting the house to my mother would probably push her total assets above £325K (due to the family home being in a London suburb).

    Looking at HMRC's CGT calculator, I'm looking at around £14K CGT charge.

    Thanks for the advice, I'm looking for the most tax efficient thing to do here.

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  • Gordon999
    Are you and your relative registered at Land Registry as joint tenants or as tenants in common ( 50% each ) ? Is your relative able to get a mortgage and buy the half share from you ?

    If you pay off the small mortgage , you could gift your 50% interest to your mother ( provided it does not push her total asset over £325K and you create a future IHT liability ) and she can received the 50% interest with no sdlt to pay.

    But there is liability to pay capital gains tax by the gifter . How much has the property price increased since it was purchased ?

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  • theartfullodger
    Set fire to it.

    No insurance payout, probably no value afterwards so no CGT to pay. Job done!

    My Dad, born 1903, was of the view that any decent citizen should pay taxes due without trying to wriggle out

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  • Mrs Mug
    If you give the property away, you will still have to pay CGT on the present market value of the property.

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  • How can I dispose of a property in a cheap tax efficient way?

    I'm a reluctant landlord as I have a share in a property with a family member. I want to sell the property, but my relative doesn't. My name are on the deeds. I don't want to start a legal dispute with my relative and I want to avoid a messy confrontation. The property has a very small mortgage on it, which I'm in a position to pay off.

    The property was joint bought over a decade ago as an investment. I now live miles away, am happily married and want to buy my first family home with my wife. Due to extra stamp duty, we're looking at around a £12k surcharge on our first home.

    I'm not sure the best thing to do here, whether it's possible for me to give the house away to my mum or say my daughter (toddler at the moment). Advice appreciated.


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