Giving property to someone and CGT.

thor

Would I be correct in thinking that you can transfer ownership of your property to someone else and not have to pay any CGT as long as it is their only house? E.g A parent transferring to their children but still living in the house along with the child? I know that in such circumstances the council can claim the house should the parent need to go into care but what are the tax implications?

p00hsticks

thor said:

Would I be correct in thinking that you can transfer ownership of your property to someone else and not have to pay any CGT as long as it is their only house?

That's my understanding providing the property has been the main residence of the owner for the entire time they've owned it (note that there is potentially a subtle difference between it being their 'only house' and their main residence).

Jeremy535897

What are you trying to achieve? Firstly, deprivation of assets is not the catch all some think it is. You have to believe that you will have to go into a care home at the time the gift is made to be caught, although the council may try their best.
But you have thrown away the capital gains tax free uplift on death, which might be relevant to the child, and it doesn't work for inheritance tax if you still live there, unless you pay full market rent.

Isthisforreal99

And child loses all first time buyer 'perks' in future.

Keep_pedalling

If you live with a child and they are almost certainly going to live with you perminantly then at most it might be worth making them a joint owner, but gifting your home away otherwise is nearly always a terrible idea. You could lose your home if your child went bankrupt, got divorced or pre-deceased you. Some people have even lost the roof over their head because the ingrate they gifted to kicked them out. 

WillowLeaf

Keep_pedalling said:

If you live with a child and they are almost certainly going to live with you perminantly then at most it might be worth making them a joint owner, but gifting your home away otherwise is nearly always a terrible idea. You could lose your home if your child went bankrupt, got divorced or pre-deceased you. Some people have even lost the roof over their head because the ingrate they gifted to kicked them out. 

I know people in this situation. Big house, plenty of room for parents and daughter/son-in-law to live together, daughter suggested they give them the house now rather than wait for inheritance, then kicked out the parents as soon as they owned it. "Hell is other people" never been truer.

Albermarle

thor said:

Would I be correct in thinking that you can transfer ownership of your property to someone else and not have to pay any CGT as long as it is their only house? E.g A parent transferring to their children but still living in the house along with the child? I know that in such circumstances the council can claim the house should the parent need to go into care but what are the tax implications?

As already mentioned it would be good to know your reasoning for wanting to do this?