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Capital Gains Tax on gifted property
Dick_Turpin99
Posts: 394 Forumite
I've just had a shock!...my folks have a smallholding and on it is an old disused barn which we have for a long time considered converting. Upshot of it all is that they will "gift" the place to me and I will do all the repairs - so far so good. Well they had it valued (lets say its between 150 > 200k) and the estate agent says I will be liable to pay capital gains on it......about 20k!!!!
What is threshold to begin paying and are there any exceptions to this?.....someone told me that if I don't have my own property in UK (I work abroad) then I don't need to pay.
So much for our wonderful country and the freedom of being able to receive a gift from your own family!!! Severely unhappy with it I am - bl00dy communism!!!
Paying that will put a serious dent in the budget before I even start!!!
What is threshold to begin paying and are there any exceptions to this?.....someone told me that if I don't have my own property in UK (I work abroad) then I don't need to pay.
So much for our wonderful country and the freedom of being able to receive a gift from your own family!!! Severely unhappy with it I am - bl00dy communism!!!
Paying that will put a serious dent in the budget before I even start!!!
0
Comments
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You need to speak to a mortgage advisor & not estate agent0
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Dislike communism? What's your name again?!!!!!!_Turpin99 wrote: »Severely unhappy with it I am - bl00dy communism!!!Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Your parents will be liable for the CGT on the transfer to you as you are a connected person.
The transfer value is the market value not any gift or notional sum used for a sale price.
Your liability to CGT is when you sell it but generally a principal private residence is exempt.
Professional advice from a taxation advisor is recommended."If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools"
Extract from "If" by Rudyard Kipling0 -
VIGILANT22 wrote: »You need to speak to a mortgage advisor & not estate agent
Thing is we haven't approached them because I have been saving the cash & intend to do it little by little (can't see the point of borrowing for a project when the cash is sitting there)0 -
DVardysShadow wrote: »Dislike communism? What's your name again?
:rotfl:Yes, good point....was the first name that came to mind0 -
Is this is currently one plot with them living on part of it?0
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its all on their 'holding' but the building itself is essentially derelict and not fit for any modern ag. purpose.0
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The EA might have been talking about when you come to sell not when gifted but who knows.!!!!!!_Turpin99 wrote: »its all on their 'holding' but the building itself is essentially derelict and not fit for any modern ag. purpose.
Whats the plan once a place is built?
Live in?
development to sell?
There will be probably be ways structure the project for any tax(not just CGT to consider) not to be liable on transfer and eventual sale with PPR relief and timings.
Gifts usualy have IHT implications should either of you die.
Both will need specialist tax advice but options will most likely depend on what the longer term plan is.
Might be a not starter if planning is going to be an issue.
Have alook on HMRC site all the legislation is there so you can get some basic background on the rules and terminology so at least you have some idea what atax advisor will be talking about0 -
Yep must be a real bummer being given a Barn to convert .
Did you know that thousands upon thousands of people would love to be in your position?, "Being gifted a barn and costing me £20k"...... Some people ,you just can't help...........0 -
get planning..... otherwise.... no go......0
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