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Selling main home to family member below market value

NestaBeattie
NestaBeattie Posts: 1 Newbie
in House buying, renting & selling
My husband and I are about to downsize and wish to sell our home
(main home) to my daughter and her partner for below market value.
i.e. market value £150,00 wish to sell at £100,00.

What are the snags? - Capital gains tax ?
Stamp duty ?

We intend to use a solicitor to process this.

Comments

  • poppysarah
    poppysarah Posts: 11,522 Forumite
    Will you continue to live in it? Are they prepared for being landlords?
  • martindow
    martindow Posts: 10,576 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You might also want to Google deprivation of capital if you ever need care in the future.
  • roger196
    roger196 Posts: 610 Forumite
    500 Posts
    edited 12 July 2010 at 6:33PM
    If the house is your principal private residence, which you have occupied throughout, there is no capital gains tax.
    However you will have made a gift of £50,000 which is PET for IHT purposes. If you die within seven years, you will be able to set your annual exemtion against this subject to the usual rules.
    If you have other children, consider revising your wills so that this gift is taken into account.
  • terryw
    terryw Posts: 4,396 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    As you selling to "connected person" CGT is calculated on the market value not the actual sale price. However as Principal Private Residence this is exempt from CGT. I assume that you are moving out.
    "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 Kipling
  • Baggysdad
    Baggysdad Posts: 130 Forumite
    Are you moving out?

    And is your daughter and her partner moving in?

    Critical bits of information!!!!
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    OP is 'downsizing'. I take that to mean moving out to a smaller property (and selling current home to daughter).

    No CGT.

    IT if dies within 7 years.

    Not sure about SDLT. At £100K there's none, but if market value is £150K... ?
This discussion has been closed.
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