Taxes on gifted 2nd property

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james_37 wrote: »

So from my understanding there is no stamp duty to pay but my mum would be liable to pay CGT on the current market value (which would presumably be taken from a valuation from an estate agent?) and would also relate to her income. Is it as simple as that even though the house was inherited 50+ years ago? Is it the market value minus the original purchase price (which I don't know how to find)?

Apologies for the bump but I know there are experts here who might have something more to say on the matter.

Many thanks

no mortgage so no SDLT payable

Mother
CGT payable by her on the gain between the market value at 31 March 1982 and its current market value.
Since neither valuations are on physical sales mother would be strongly advised to get a professional valuation done by a RICS surveyor who will commit to attending an HMRC valuation tribunal if HMRC contest either value. That is bread and butter work to such a surveyor, but comes at a cost...

alternatively, mother can dispose of shares in the property to you by way of gift to the value of her annual exempt amount each year.
Such action is legitimate and is called asset "fragmentation"
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg18150

since it appears she will continue to benefit from access to the property be careful that her gift does not backfire and she is deemed to still own it in full (gift with reservation of benefit) for IHT purposes.

Given the sums involved (since her estate must be >£1m to require such inheritance tax avoidance planning) she should be taking PROFESSIONAL advice, not relying on your fumbling on the internet when you have no background knowledge to start with

You
will acquire your share of the property at the market value applicable at the date of the gift. You will then use that as your own "original" cost when you come to pay your own CGT if and when you dispose the property yourself (by sale or gift).