CGT on future sale of BTL property?

M3_Sussex

Gorgeous_George wrote: »

Maybe you could transfer just enough to avoid CGT i.e., a %age of the property up to a value that would attract CGT of £9,200 so about £23K worth of house. You could this again in the next financial year until you have gifted as much as you wish.



GG

What would be the process to achieve this? I assumed either his name was on the deeds or it wasn't. I didn't realise you could apportion a certain amount each year.

Gorgeous_George

You'd need to post/pm the current value of the house and the value when bought and date. This should be enough info to calculate how much of the property you could transfer this FY.

Then, a solicitor assigns the property to joint, but unequal, owners/ Next year, you repeat the process.

There's probably a reason why this wouldn't work but other than IHT rules, I don't see a problem.



GG

M3_Sussex

I had the house valued last week at 290K. It was purchased in 07/2004 for 217K.

Gorgeous_George

I reckon that you could transfer about 12.5% (£36,500) of the house value to your son. This would realise a capital gain of £9,200 and, as this is your annual allowance, no tax would be payable. However, I am not a tax expert so please, consult an expert!



GG