CGT on property gift

Jinto

Hi,
I have a question on CGT that I would like an informed opinion on before I seek professional advice.

I inherited 50% of a property 8 years ago. I have been renting this out for that period.
I wanted to give my share of the property to my children but I believe that I would be liable for CGT on the full market price of my share less it’s value when I inherited.

I was wondering whether it was possible to gift only a share of the house (to a value which would be below my CGT limit for the year). If so could this procedure be repeated over a number of years until my full share had been transferred to my children?

Jinto

Thank you for the advice,
I did suspect it wouldn’t be that easy but I thought it would be worth asking the question.
I wouldn’t want to do anything that wasn’t 100% legitimate; I was just looking to see if there were any legal loopholes that could be exploited.

The part about the sitting tenant is interesting, It isn’t something that I had considered as influencing the market value.

CLAPTON

remember that you can give half your share to your wife tax free and then she can use her 9200 CGT allowance as well as you using yours..you also have taper relief

kennyboy66_2

1) Use your spouse allowance if possible by gifting them 1/2 or your share.
2) Taper relief means that only 70% of the gain is chargeable after 8 years. The 70% would also apply to your wife share if you go down that route.

3) Do you have any allowable loses. eg do you hold any shares currently showing a loss?

Jinto

Thanks, I hadn’t thought of giving half to my spouse, that could make quite a difference.