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    • LeonRefresh
    • By LeonRefresh 8th Sep 17, 11:16 AM
    • 3Posts
    • 0Thanks
    Second Home Land Tax/Gifting property to relative (Scotland)
    • #1
    • 8th Sep 17, 11:16 AM
    Second Home Land Tax/Gifting property to relative (Scotland) 8th Sep 17 at 11:16 AM

    I'm hoping for some advice around 2nd home stamp duty/Land tax (Scotland Freehold).

    At the moment I own a flat outright mortgage free 60k approx value. I intend on buying a new main residence at a value of 190k.

    I would stand to have to pay substantial 2nd home land tax on the new property (6k almost) unless I dispose of my original main residence.

    My question is - I really want to keep the flat in the family and was intending on gifting it to my mum who already has a rental portfolio of 3 houses, this will be added to bolster her retirement income. As this will be a gift I will not be receiving any funds in exchange for the flat (simply amending the title deeds/landregistry and handing them over) will there be any Land Tax payable by my mum? I presume not as this is based upon the purchase price? I will be staying in the flat rent free until I move to my new main residence. I would retain it in my name and let her manage it and keep the income if it wasn't for the Land Tax!!

    I will have no financial interest in the flat any more so presume no implications for me in terms of second home land tax when I exchange on my new property? Also presume that no capital gains would be due as no profit turned/Flat was main residence?

    Hope there is relevant information here for anyone to tell me if there is anything glaring here that could land me in trouble - intentions aren't underhand but I can see it might look like some sort of avoidance if it was looked at through a cynical eye!!

    (New thread posted as exxisting land registry thread is Wales/England only).

    Thanks in advance.
Page 1
    • Keep pedalling
    • By Keep pedalling 8th Sep 17, 11:29 AM
    • 5,095 Posts
    • 5,681 Thanks
    Keep pedalling
    • #2
    • 8th Sep 17, 11:29 AM
    • #2
    • 8th Sep 17, 11:29 AM
    Two potencial issues with this, the first is that addining more to your mother's estate could make it subject to 40% IHT. The second is that you mother may end up leaving it to a toy boy, or the local cats home.
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