|
UK Property Tax Portal
UK Property Tax Q&A
Gift of home to daughter: What is the tax treatment?
Question
My wife and I have lived in our property home for 40 years. What will be the capital gains tax (CGT) position if we gifted the property to our daughter now and paid rent to continue living in the property?
Arthur Weller replies: Since it appears that you have lived in the property as your main residence all the period of your ownership, you will have no CGT to pay when you gift the property to your daughter, due to principal private residence relief. Paying rent to your daughter will have no effect on the CGT position, but it could have an effect on your IHT position, and your daughter's income tax position.
Property Tax Insider
This sample question and answer is taken from Property Tax Insider, a monthly UK tax saving magazine for landlords and property investors.
|