Giving relative money gift

00ec25

jake1870 wrote: »

I have been renting the house out and am now selling it, I have another property that I live in.
My sister has a good job and her own house.
So I am giving her around 100,000 off the sale of the house, As a gift. What's the best way to do it?
Thanks for the replys

so you are liable for CGT on the whole gain

how you give her the cash after you've paid your tax is not an issue. You just transfer the money to her in any manner you care to use

kidmugsy

Jake, I agree with the others. First settle your Capital Gains Tax bill. Then you'll know how much after-tax profit you've made, and can gift whatever amount you think best.

agrinnall

I'm going to play devil's advocate and put an alternative argument, which is that you should give your sister the full £100,000. My reason for this is that it was your decision to use the money that your mum gave you on a rental property rather than somewhere to live, and the CGT liability should come out of your share of the profit.