CGT on Transfer/gift of property

sexysam

Does one have to pay any CGT if a sister transfers her old house to her younger brother as a gift, with no money exchanging hand?

CLAPTON

Giving / transferring the house is the same as selling as far as CGT is concerned.

So if the sister is living in the house as her principal residence then there would be no cgt.
However if she is not living in it and its not her principal residence then there may be a liability for cgt.

It you gave more complete details we could help more.

System

I'm not sure about CGT but I think if the sister passed away within 7 years the property would still be classed as part of her estate and IHT would be liable if the estate value is over the IHT threshold. I believe you can only gift £3000 per year

Debt_Free_Chick

Just to clarify, if CGT is payable, the donor (sister) pays it.

If IHT is payable, the estate pays it.

Either way, the recipient doesn't pay it.

Johnhowell

sexysam wrote: »

Does one have to pay any CGT if a sister transfers her old house to her younger brother as a gift, with no money exchanging hand?

Is there a mortgage on the property?

Would not stamp duty be due on this transfer - regardless of no money being exchanged. If more than the £125,000 Stamp Duty lower limit.

Regards,
John