CGT on Dads property - Sale to family member market value?

AdrianC

Wkmg said:

AdrianC said:

I s'pose setting fire to it would be one way of saving on CGT...

Do you pay CGT on insurance payouts...?

Good luck getting a payout to pay CGT on, if the insurer gets a whiff of the convenience of the "lightning strike"...

Jac96

Can I pay HMRC/Land registry to value the property so that we know their determined value before the purchase? 

AdrianC

Jac96 said:

Thanks for the reponses guys. 
So lets say an identical house next door is worth 125,000
Purchase price say 100,000. 

My dad would have to submit the gain using the OMV 125,000 as S.P. 

What happens when I come to sell the house? (If it was only my main residence for a couple of years and then an investment property) 
Would my purchase price for CGT purposes be 125,000, even though I only paid 100,000? Surely HMRC wouldn't double count the 25,000 difference? 

So if he sells you the £125k property for £100k...?
If the open market value at the date of the transaction is £125k, then it's £125k for both ends of the CGT, yep...

The other £25k is deemed to just be a gift.

p00hsticks

Jac96 said:

Can I pay HMRC/Land registry to value the property so that we know their determined value before the purchase? 

You'd get a RICs surveyor to give you a market valuation.

[Deleted User]

your dad would sell it to you for £125,000
He’d get £100,000 cash ( presume by you raising a mortgage ) and unequivocally gift you the £25,000 which is your deposit 

greatcrested

Jac96 said:

Can I pay someone at HMRC/Land registry to value the property so that we know their determined value before the purchase?  at the prie I pay so that the CGT is reduced?

Yes, if you fnd the right person and offer them enough....