Passing on property to brother, would he need to pay any tax?

steveburns

Thanks for the replies. I just phoned HMRC and they said I would have to pay capital gains tax if I passed it on, even as a gift. I am a bit surprised. I thought transferring ownership to a family member would be simple with just legal costs needed.

p00hsticks

steveburns wrote: »

Thanks for the replies. I just phoned HMRC and they said I would have to pay capital gains tax if I passed it on, even as a gift. I am a bit surprised. I thought transferring ownership to a family member would be simple with just legal costs needed.

Have you worked out whether any CGT would actually be due ? You say you inherited, so you'd need to know the valuation put on it then (presumably it was valued for any potential inheritance tax due at the time). You'll only pay tax on any gain since then and you can subtract selling/transfer costs. As you've rented out the property you may get lettings relief and you have a CGT allowance of around £11,000


So chances are there'll actually be no/little tax due



https://www.gov.uk/tax-sell-home/let-out-part-of-home