Gifting an inherited stake in a property to avoid 2nd home stamp duty. Any advice?

getmore4less

Jackwatson wrote: »

Hi guys,

First off, thanks for reading!

So a few years ago when my grandma passed away she left 20% of her house to me and my brother each, and the remaining 60% to my mum.
...........

Thanks again for reading, and any advice you might be able to offer.

Jackwatson

Were those two 20% absolute or was there any life interest for your mum?

£500 to do the transfer seems a bit steep for a few forms.

00ec25

Typhoon2000 wrote: »

Could he sell his share to a SPV ltd company he sets up?

Typhoon2000 wrote: »

We’ll stamp duty is paid on the consideration and not not the underlying value. As there is no mortgage to be concerned with you can make the consideration small, for which there is no stamp duty. So it starts with N....

you said sell to the SPV, clear implication that there is consideration involved.

Although CGT would still be payable by the OP on the disposal to the SPV and the SPV would be subject to corporation tax when it sells and the OP then has to pay tax to take the cash out of the SPV. Obviously there is a financial break point where it is tax efficient, but for one single property rather a lot of faff and 3 lots of tax to balance.

SDLT_Geek

There is chargeable consideration if you "gift" a property to your limited company. It is on the market value. See Finance Act 2003 section 53.