Gift House to Daughter

AndyM1962

Hi, we purchased a house in June last year with the intention that this would be for our daughter on her return to the UK (she had been living in Italy for the last 15 years). She has since moved in and we are looking to transfer the title into her name but are really confused about CGT and how that may affect us. I doubt the house value will have changed much in that short time (if at all), but am unsure how to go forward with this one before we finalise the transfer of title to her. Do we get a valuation from an estate agent to show the current value, or because we had effectively purchased this "in trust" for her are we subject to CGT at all and if not how do we prove this is the case ?

Can anyone adise me please ?

poppy12345

You have posted on the welfare benefits section of the forum. Not sure which part would be best but you can try the cutting tax part.

Alice_Holt

AndyM1962 said:

...looking to transfer the title into her name but are really confused about CGT ......or because we had effectively purchased this "in trust" for her are we subject to CGT 

Can anyone advise me please ?

      I would expect a local chartered accountant would be able to enlighten you.

      Are you selling the property to your daughter, or gifting it?
      ( Capital Gains Tax would only apply if you are selling it at a profit)

     You may wish to be made aware of the IHT implications if gifting it. This is a complicated area of taxation. It is IHT you will need to worry about if gifting it.  


      Possibly a very, very expensive mistake accruing for your daughter if you get this wrong, just pay for professional advice. 

Icequeen1

Alice_Holt said:

AndyM1962 said:

...looking to transfer the title into her name but are really confused about CGT ......or because we had effectively purchased this "in trust" for her are we subject to CGT 

Can anyone advise me please ?

      I would expect a local chartered accountant would be able to enlighten you.

      Are you selling the property to your daughter, or gifting it?
      ( Capital Gains Tax would only apply if you are selling it at a profit)

     You may wish to be made aware of the IHT implications if gifting it. This is a complicated area of taxation. It is IHT you will need to worry about if gifting it.  


      Possibly a very, very expensive mistake accruing for your daughter if you get this wrong, just pay for professional advice. 

I don't think that is correct with respect to CGT. If you gift to someone (not including your spouse) then it is treated as market value at the date of the gift. If it wasn't the OP's home then there may be a CGT issue. See https://www.gov.uk/capital-gains-tax/market-value