CGT on a gifted property

StephenK85 · 30 March 2019 at 7:31AM

Hello,

I have a question regarding GCT on a property I was gifted. My parents sold me a property under market value, the property was worth £220k and I was lucky enough to buy it for £117k. I have been living in the property by myself for the last year. I have another four years left of a fixed mortgage. My question is if I was to sell the property and put that money toward another property would i have to pay GCT? Also if so how much ?

Thanks Stephen.

getmore4less · 30 March 2019 at 7:50AM

Read up on Private Residence Relief(PRR).

Keep_pedalling · 30 March 2019 at 8:54AM

No, but if this was not your parents residence when they sold it to you they may have had a CG liability, which would have been based on the market value not the price you paid for it.

00ec25 · 30 March 2019 at 8:58AM

and whether it was your parents home to the date they gave it to you or not, the 103k discount is a gift in terms of their inheritance tax position if either dies within the next 7 years