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  • FIRST POST
    • Davemiller
    • By Davemiller 5th Mar 18, 6:12 PM
    • 2Posts
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    Davemiller
    property transfer as a gift for CGT
    • #1
    • 5th Mar 18, 6:12 PM
    property transfer as a gift for CGT 5th Mar 18 at 6:12 PM
    I presently own a 2nd property that I bought for cash in 2001, it was rented out to the same friend until 2007. From that period on because I developed a relationship with her I allowed her to live there rent free. During this whole period I lived in my own home (no mortgage) that
    I'm in the process of selling with the intention of moving into my (2nd) Property with her with the intention of getting married.
    I want to sell this (2nd) property asp for us to move to new home together.
    Q. If we got married and then transfer the title to her would we avoid CGT on the whole amount, as she has lived there for the whole period of ownership.
    Q. Or is there another way of doing it.
    The property was bought for 68,000 and now valued at 200,000
    Last edited by Davemiller; 05-03-2018 at 8:14 PM. Reason: clarify status
Page 1
    • Tom99
    • By Tom99 5th Mar 18, 6:32 PM
    • 2,057 Posts
    • 1,383 Thanks
    Tom99
    • #2
    • 5th Mar 18, 6:32 PM
    • #2
    • 5th Mar 18, 6:32 PM
    No you will be treated as disposing of it at market value so CGT will apply.
    • 00ec25
    • By 00ec25 5th Mar 18, 7:24 PM
    • 6,367 Posts
    • 5,879 Thanks
    00ec25
    • #3
    • 5th Mar 18, 7:24 PM
    • #3
    • 5th Mar 18, 7:24 PM
    she was not an owner whilst she lived there, you were the owner but you did not live there

    CGT applies to the gift as explained above, on market value at the date of the gift
    • Davemiller
    • By Davemiller 5th Mar 18, 8:18 PM
    • 2 Posts
    • 0 Thanks
    Davemiller
    • #4
    • 5th Mar 18, 8:18 PM
    The Power Of Partnership
    • #4
    • 5th Mar 18, 8:18 PM
    As long as the property transfer is a “gift” – i.e. that there is no money changing hands and no change in who is liable for the mortgage – there will be no capital gains tax due on the gift between the spouses. Then, when the property is sold to a third party, the reliefs available will be much more generous.
    • Tom99
    • By Tom99 5th Mar 18, 8:51 PM
    • 2,057 Posts
    • 1,383 Thanks
    Tom99
    • #5
    • 5th Mar 18, 8:51 PM
    • #5
    • 5th Mar 18, 8:51 PM
    As long as the property transfer is a “gift” – i.e. that there is no money changing hands and no change in who is liable for the mortgage – there will be no capital gains tax due on the gift between the spouses. Then, when the property is sold to a third party, the reliefs available will be much more generous.
    Originally posted by Davemiller
    Since the OP intends to sell this property ASAP, the gift and then disposal to a third party would be seen as linked transactions specifically to produce a tax benefit, ie a sham and the gift ignored.
    • Thrugelmir
    • By Thrugelmir 5th Mar 18, 9:39 PM
    • 58,442 Posts
    • 51,814 Thanks
    Thrugelmir
    • #6
    • 5th Mar 18, 9:39 PM
    • #6
    • 5th Mar 18, 9:39 PM
    Q. If we got married and then transfer the title to her would we avoid CGT on the whole amount, as she has lived there for the whole period of ownership.
    Originally posted by Davemiller
    You'd simply defer the CGT liability.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • charolettepope
    • By charolettepope 6th Mar 18, 12:08 PM
    • 21 Posts
    • 3 Thanks
    charolettepope
    • #7
    • 6th Mar 18, 12:08 PM
    • #7
    • 6th Mar 18, 12:08 PM
    CGT will apply. Also, you are actually the owner of the property unless you have explicitly mentioned her name in the property document.
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