Any CGT ih house given to son?

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    Any CGT ih house given to son?

    my wife and i would like to gift to our son a house we have rented for ten years, for his eighteenth birthday. the property was bought for 40,000 and is worth around 200,000.
    will he have to pay cgt if he sells ?

    #2
    Also:

    1. Is it in mortgage? If so, you will need either to:
    a. discharge the mortgage debt on completing the Transfer; or
    b. obtain consent from the mortgagee (lender).

    2. How long ago did you acquire it? Depending on date of last purchase (and any subsequent Transfer/Assent) and within which local authority's area it is located, it might still be unregistered. The proposed Transfer to your son would then entail a larger registration fee at HM Land Registry (whereas the fee would be only £50 if it's already registered).
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      18? What 18 year old is sensible enough to own a house? (I mean own it outright without having tp have the respobibility of a mortgage)

      Comment


        #4
        It is you that will have the CGT liability not him!

        Assuming that you have never lived in the property, you have a gain of about 160k. Gifting the property to a family member counts, for tax purposes, as a transfer at market value. If you make this transaction now, you have CGT allowances af 9.2k each, the remaining amount will be taxed at your marginal rates. If you wait until after April, the rate will be 18% if the rules announced in the pre-budget become law.

        If your son lives in the property, he will have no CGT liability when he eventually sells it.

        Comment

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