Sign up to get our free landlord tax strategies

To receive our seven FREE landlord tax saving strategies just simply complete the form below and the first strategy will be emailed to you immediately.

Sign up to get our free landlord tax strategies

Thank You!

Seven FREE property tax busting strategies reveal the secrets of how to legitimately beat the taxman and boost your property profits!
View All Questions

Tax implications of gifting a property to my daughter

Question I want to transfer a property in Liverpool to my daughter to help my inheritance tax (IHT) planning. What value is used for the gift? There will be no cash consideration given and the property is a buy-to-let property which my daughter has been managing for me for some time and I now feel that now is the time to transfer the property to her. Will the market value be used for capital gains tax (CGT) and stamp duty land tax (SDLT) purposes? If the property was purchased 30 years ago for £30,000, is that value used and then my daughter takes care of any gain in years to come when she sells the property? 
Arthur Weller replies: 
For CGT purposes, you are deemed to transfer to your daughter at today's market value. So the difference between the market value and the £30,000 you originally paid for it will be your capital gain, and you will have to pay CGT accordingly, even though you are not receiving any money from your daughter. As for SDLT, different rules apply. If you gift the property to your daughter for nothing (i.e. she doesn't pay anything) there is no SDLT for her to pay. 

Property Tax Insider This sample question and answer is taken from Property Tax Insider, a monthly UK tax saving magazine for landlords and property investors.

The first issue is free so click here to try today!

Got a burning tax question?

Why not submit a tax question to our tax advisors

Ask a Question