Which is more tax efficient - giving or selling property to my son (for an expat)

zygurat789

Farrella wrote: »

Thanks for the advice again

So I guess the consensus from everyone is I should "gift" the flat to my son, which will incur no stamp duty. And we should get a surveyor to value to flat to ascertain current market value for future capital gains purposes. Original purchase price was £250k but it's worth twice that now.

What should I do with the £35k mortgage that is currently in my name? Can the mortgage stay the way it is without switching anything (I've got a good rate at the moment, under 2%)?

If you willed the flat to your son his eventual CGT would probably be less because the probate value, in years to come, will be greater than the market value now.

You should not do anything as a result of ideas on this thread. You have, understandably, not told us the full story so we cannot give definitive advice.
You should consult a professional who is experienced in the fields you are in, overseas and IHT and tell them the full story so that they can properly advise you

xylophone

What should I do with the £35k mortgage that is currently in my name? Can the mortgage stay the way it is without switching anything (I've got a good rate at the moment, under 2%)?

Won't you have to repay the mortgage before you can make the gift?

Farrella

I guess in an ideal world I'd keep the mortgage as is (good rate but under my name) and just switch the official owner of the flat to my son's name...

ps: Regarding my will, I'm not young but I'm hoping to live more than 7 years!

xylophone

I guess in an ideal world I'd keep the mortgage as is (good rate but under my name) and just switch the official owner of the flat to my son's name...

Would the mortgagee allow this?

Farrella

I don't think they'd allow it...I use Halifax.