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property transfer as a gift for CGT
Davemiller
Posts: 2 Newbie
I presently own a 2nd property that I bought for cash in 2001, it was rented out to the same friend until 2007. From that period on because I developed a relationship with her I allowed her to live there rent free. During this whole period I lived in my own home (no mortgage) that
I'm in the process of selling with the intention of moving into my (2nd) Property with her with the intention of getting married.
I want to sell this (2nd) property asp for us to move to new home together.
Q. If we got married and then transfer the title to her would we avoid CGT on the whole amount, as she has lived there for the whole period of ownership.
Q. Or is there another way of doing it.
The property was bought for 68,000 and now valued at 200,000
I'm in the process of selling with the intention of moving into my (2nd) Property with her with the intention of getting married.
I want to sell this (2nd) property asp for us to move to new home together.
Q. If we got married and then transfer the title to her would we avoid CGT on the whole amount, as she has lived there for the whole period of ownership.
Q. Or is there another way of doing it.
The property was bought for 68,000 and now valued at 200,000
0
Comments
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No you will be treated as disposing of it at market value so CGT will apply.0
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she was not an owner whilst she lived there, you were the owner but you did not live there
CGT applies to the gift as explained above, on market value at the date of the gift0 -
As long as the property transfer is a “gift” – i.e. that there is no money changing hands and no change in who is liable for the mortgage – there will be no capital gains tax due on the gift between the spouses. Then, when the property is sold to a third party, the reliefs available will be much more generous.0
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Davemiller wrote: »As long as the property transfer is a “gift” – i.e. that there is no money changing hands and no change in who is liable for the mortgage – there will be no capital gains tax due on the gift between the spouses. Then, when the property is sold to a third party, the reliefs available will be much more generous.
[FONT=Verdana, sans-serif]Since the OP intends to sell this property ASAP, the gift and then disposal to a third party would be seen as linked transactions specifically to produce a tax benefit, ie a sham and the gift ignored.[/FONT]0 -
Davemiller wrote: »Q. If we got married and then transfer the title to her would we avoid CGT on the whole amount, as she has lived there for the whole period of ownership.
You'd simply defer the CGT liability.0 -
CGT will apply. Also, you are actually the owner of the property unless you have explicitly mentioned her name in the property document.0
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