CAPITAL GAINS TAX

Jason35x

I am gifting a property and filling out the CGT calculator. Its asking me what my expected income for the year will be? I do not work. I get PIP, Carers and UC. What do I declare as income? all of it?

Keep_pedalling

Gifting a property would likely be classed as deliberate deprivation of assets as far as means tested benefits is concerned, can you afford to pay the tax and lose UC?

theartfullodger

What is property worth (market value not any agreed amount).

Just report your income.

Bookworm225

Jason35x said:

I am gifting a property and filling out the CGT calculator. Its asking me what my expected income for the year will be? I do not work. I get PIP, Carers and UC. What do I declare as income? all of it?

for the purposes of the CGT calculation it needs to know what income tax bracket you fit in and how much your TAXABLE income is 

carers is a taxable state benefit and so counts as income for the CGT calculation 
PIP and UC are tax free state benefits and do not count as income 
Income Tax: introduction: Tax-free and taxable state benefits - GOV.UK

the point being your total taxable income determines how much of the gain is taxed at the lower CGT rate for property and how much of it is taxed at the higher CGT rate for property 

the threshold is the basic rate income tax threshold, ie: £50,270. So deduct your carers allowance from that and the balance is how much will be at 18%  CGT. Any remaining gain in excess of the 50,270 threshold is then taxed at 24%

Jason35x

If she gifts it to me then we wont pay CGT and because there is no value we wont pay LBTT. As we are both on the UC claim putting the property from one name to the other will not make any difference to the claim as the capital still stays withing the claim so not deprivation of assets either. It should though mean she now does not own 2 properties and so should not have to pay ADS tax when she sells her main home.

Bookworm225

Jason35x said:

If she gifts it to me then we wont pay CGT and because there is no value we wont pay LBTT. As we are both on the UC claim putting the property from one name to the other will not make any difference to the claim as the capital still stays withing the claim so not deprivation of assets either. It should though mean she now does not own 2 properties and so should not have to pay ADS tax when she sells her main home.

your story has totally changed
it started with you gifting, now you say it is her?
who owns it > you or her?????

no CGT? are you married to her?

your understanding of ADS looks suspect, is there an o/s mortgage? 
where will she live when she sells her main home ?

how is she on UC if she already owns 2 properties?

saajan_12

Jason35x said:

If she gifts it to me then we wont pay CGT and because there is no value we wont pay LBTT. As we are both on the UC claim putting the property from one name to the other will not make any difference to the claim as the capital still stays withing the claim so not deprivation of assets either. It should though mean she now does not own 2 properties and so should not have to pay ADS tax when she sells her main home.

Eh? Gifts are subject to CGT, as its based on the value of the property, not what you pay for it. If a property is sold between strangers then the assumption is that the price paid = value, but if its a gift then they don't believe its worth £0. The gifter would still owe CGT based on the value at the point of gifting.