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Property given as deed of gift - CGT applicable?

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Hello

My parents signed their house over to me as a 'deed of gift' around 20 years ago. I do not live at the property, is CGT applicable on this property?

Thanks

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  • sheramber
    sheramber Posts: 19,723 Forumite
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    If you are selling it, yes.
  • Keep_pedalling
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    Do they still live in it? If they do (or they did within the last 7 years) then the house still forms part of their estate for IHT purposes (unless they have also been paying you market rent), and neither estate can claim the residential NRB. 

  • JC640
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    If you are going to sell it, then basically yes.

    According to gov.uk/tax-sell-property you may have to pay Capital Gains Tax if you make a profit when you sell or dispose of property that’s not your home

    However:
     -You do not usually need to pay tax on gifts to your husband, wife, civil partner or a charity.
     -You may get tax relief if the property is a business asset.
     -If the property was occupied by a dependent relative you may not have to pay.


  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    edited 19 September 2023 at 1:27PM
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    JC640 said:
    If you are going to sell it, then basically yes.

    According to gov.uk/tax-sell-property you may have to pay Capital Gains Tax if you make a profit when you sell or dispose of property that’s not your home

    However:
     -You do not usually need to pay tax on gifts to your husband, wife, civil partner or a charity.
     -You may get tax relief if the property is a business asset.
     -If the property was occupied by a dependent relative you may not have to pay.


    a) The op is selling not gifting.
    b) It is clearly not a business asset.
    c) You would be hard pushed to get DR exemption as the DR would have to be resident in the property at April 1988 (when it was abolished). Still possible I suppose!
  • xylophone
    xylophone Posts: 44,851 Forumite
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    My parents signed their house over to me as a 'deed of gift' around 20 years ago. I do not live at the property, is CGT applicable on this property?

    Presumably you mean is CGT payable if you  sell it  now or in the future rather than was it payable when your parents gifted it? The house at the time of the gift was their  Principal Private Residence?

    https://osborneslaw.com/blog/gifting-property-to-children/#:~:text=If you give away your,when the gift is made.

    The property is in your sole ownership and you do not occupy it.  It will presumably increased in value over the last twenty years.

    You will need to establish the value in 2003 (?) if you choose to sell in order to establish CGT liability.

    https://www.gov.uk/capital-gains-tax/what-you-pay-it-on

  • slider09
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    Thank you all. 

    What would happen if I sold the house and bought a new one?  Would CGT be taken off during the sale / purchase, or would the CGT transfer to the next property?  
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    edited 21 September 2023 at 9:08AM
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    slider09 said:
    Thank you all. 

    What would happen if I sold the house and bought a new one?  Would CGT be taken off during the sale / purchase, or would the CGT transfer to the next property?  
    CGT would not be rolled over. You will be liable to pay any CGT within sixty days of completion, normally contract exchange, of the sale of the property. 

    Everything stated by xylophone in his post remains pertinent.
  • slider09
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    xylophone said:
    My parents signed their house over to me as a 'deed of gift' around 20 years ago. I do not live at the property, is CGT applicable on this property?

    You will need to establish the value in 2003 (?) if you choose to sell in order to establish CGT liability.


    Thanks - how would one determine the value of a property from 2003? 
  • slider09 said:
    xylophone said:
    My parents signed their house over to me as a 'deed of gift' around 20 years ago. I do not live at the property, is CGT applicable on this property?

    You will need to establish the value in 2003 (?) if you choose to sell in order to establish CGT liability.


    Thanks - how would one determine the value of a property from 2003? 
    Quite simply you will have to pay for an independent valuation to be made. HMRC will instruct a district valuer to do the same job.
  • Jeremy535897
    Jeremy535897 Posts: 10,468 Forumite
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    edited 22 January at 3:51PM
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    slider09 said:
    xylophone said:
    My parents signed their house over to me as a 'deed of gift' around 20 years ago. I do not live at the property, is CGT applicable on this property?

    You will need to establish the value in 2003 (?) if you choose to sell in order to establish CGT liability.


    Thanks - how would one determine the value of a property from 2003? 
    Quite simply you will have to pay for an independent valuation to be made. HMRC will instruct a district valuer to do the same job.
    Or, if similar properties were sold at a similar time (same style in same street, for example) use Zoopla, and say how you have done it. I doubt HMRC will invoke the DV unless it is a very valuable property.
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