Property transfer as a gift - tax implications

Abz385

Hi folks

I own a property mortgage free and is our main residence, i also own a second small holiday home which is mortgaged. My wife wants to gift a property to me in full with no money exchange and the property is mortgage free, this property is currently occupied by my parents with no rent being paid. What are the tax implications to me and my wife for this property to be gifted to me.

foxy-stoat

If your asking about income tax, transferring property is not income.
If your asking about SDLT, no money is changing hands so no tax to pay.

Probably one for your accountant to answer if you have other questions.

davidmcn

Potential capital gains tax liability for your wife (based on the current market value).

Retired_Mortgage_Adviser

As per the same question asked in an advice column here in 2018 (gifting mortgage free property to spouse) https://www.moneywise.co.uk/work/tax/can-my-husband-transfer-property-me-help-us-save-taxes , the advice is -

As there is no mortgage on the property, no stamp duty land tax will arise on the transfer.

Also, because the transfer is between spouses, there are no capital gains and inheritance tax implications. Legal advice will be needed on the transfer of the property.

Abz385

Hi davidmcn

Would that be the case here, the gift of transfer is not involving any cash exchange or any other type of exchange

Andysandy

From recent experience, transfers of assets between spouses generally bear no capital gains tax consequences. Unless of course there's has been a change in legislation in the last 2-3 years.

davidmcn wrote: »

Potential capital gains tax liability for your wife (based on the current market value).

Tom99

Abz385 wrote: »

Hi davidmcn

Would that be the case here, the gift of transfer is not involving any cash exchange or any other type of exchange

There is no tax on the gift but your acquisition cost for when you come to sell will be the price/date at which your wife acquired the property, in effect any CGT is deferred/rolled over rather than being re-set which would happen if you inherited a property.