Gifting 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 ?

getmore4less

Cash purchase?

If it was for her why was it not bought in her name?

[Deleted User]

Effectively purchased in trust suggests that it wasn’t. Arrange a valuation  from an independent estate agent and, if no gains to pay, so be it. Both of you will have to declare the transfer though as it exceeds (presumably) 98600. No doubt you are aware of the IHT implications also.

xylophone

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 

This is far from being a purchase "in trust".

You bought a property  ( for cash?) which stands in your names - did you pay the extra SDLT on a second home?

You will need to have the property valued for CGT and potentially IHT purposes.

As the purchase is so recent it may be that CGT will not be a consideration.

Jeremy535897

purdyoaten2 said:

Effectively purchased in trust suggests that it wasn’t. Arrange a valuation  from an independent estate agent and, if no gains to pay, so be it. Both of you will have to declare the transfer though as it exceeds (presumably) 98600. No doubt you are aware of the IHT implications also.

I agree. There would have to be some clear evidence to the contrary. If you have no other gains, you each have an annual exemption of £12,300 to set against any gain on the eventual gift. Presumably the value will exceed £98,400, in which case the gains will need reporting even if the gains are within the annual exemptions. HMRC could challenge the value you use, of course.

If the value has risen sufficiently to create a capital gains tax liability, see: https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax  This applies to gifts as well as sales.