CGT on a Vendors Gifted

amjad171

Hello,

I'm wondering if someone can help with a query I have regarding CGT on a Vendors gifted.

I agreed a fee of 103k with a buyer on a property I bought for 80k 16months ago. I got a call from her mortgage broker last week saying the valuation is going to be done and on the form he is going to be putting the value of the property at 115k.

I had already spoken to my accountant and knew what my CGT amount would be for selling at 103k.

Now I get a call from the broker today saying he wants me to do a vendors gifted and gift the buyer 12k as the valuation has come back at 115k, meaning i get the 103k agreed with the seller. I said to him this doesn't sound right to me and I will be speaking to my accountant about this and my CGT. The broker has said on a gifted deposit you don't pay CGT.

Can someone tell me if he is telling the truth and whether on a vendors gifted you do pay CGT?

Ian_W

amjad171 wrote: »

Now I get a call from the broker today saying he wants me to do a vendors gifted and gift the buyer 12k as the valuation has come back at 115k, meaning i get the 103k agreed with the seller. I said to him this doesn't sound right to me and I will be speaking to my accountant about this and my CGT. The broker has said on a gifted deposit you don't pay CGT.

Don't know the answer re CGT though I suspect as the £12K isn't a gain it won't be subject to CGT - that is a guess though!

What it almost certainly is though is MORTGAGE FRAUD. Whilst appreciating you won't want to lose your buyer, if the facts come to light and you've co-operated with it then it's quite possible you could be prosecuted along with the broker, buyer [and probably valuer].
I would speak to your solicitor about this soonest before your accountant. 18% of £12K pales into insignificance compared with cell sharing care of HMP! :eek:

amjad171

It is for this reason why I have posted this on the message board to find out if this is common practise or not and whether its legal or not. I will speak to my solicitor today.
Thanks