Capital gains tax on gifted property

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    Capital gains tax on gifted property

    Hey folks!!

    Hope you can answer my question/questions------------So I was gifted a property by my parents.. the property had a sitting tenant in place.. now 3years on the sitting tenant has gone into care leaving me with an empty property........ my question is that if I sell my own home and move into the "gifted" property am I liable for capital gains tax.......I did not nominate which home was liable for CGT as I thought the tenant could be in house for 20yrs plus

    Also I have recently received a computer generated letter from HM Revenue& Customs/Local Compliance Centres Property Sales Campaign Team.. Glasgow

    Saying... Our records indicate that you MAY have sold a property which is liable to Capital Gains Tax.........with a list of options of advice and what happens if I do not pay etc etc

    But I have not sold the property it is stood empty with council tax being paid with myself thinking what to do/ which direction to take.....

    Has anyone else encountered this type of letter??

    Any advice on which steps to take on both situations would be great

    1. If you sell your existing home, there will be no CGT to pay if it has been occupied by yourself throughout the period of ownership.

    2. For the gifted property, you should buy a copy of the property title and check if the property is under your name and last date of transfer is correct. If the information is correct , then write back to Compliance Centre and confirm you have not sold the property.


      If a property is tenanted, it cannot qualify as your "residence" and, therefore no Nomination/Election is required or indeed possible.

      Moving into the "gifted" property and making it your home for a significant length of time could enable PPR relief and thus Lettings Relief.

      Have you read HMRC's Help Sheet HS283 on the subject?


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