As long as the home you give away is your main home, Capital Gains Tax won’t be payable.
However, if you give away a second home, Capital Gains Tax may be payable if the property has increased in value between when you first owned it and when you gave it away.
If you sell your second home and give the money to your children, the gift won’t be included in your estate for Inheritance Tax purposes, provided you live for 7 years after you make the gift.
Each year individuals have a capital gains tax allowance, called an exemption
| Customer group | 2012-13 | 2013-14 | 2014-15 |
|---|---|---|---|
| Individuals, personal representatives and trustees for disabled people | £10,600 | £10,900 | £11,000 |
It is possible to to gift property in stages.
Your solicitor will draw up the required documents to conveyance a percentage of the property and register the transactions with the Land Registry.
In order to calculate the capital gain you will need to know the acquisition cost and any reliefs such as PPR.
Giving away your property in stages could save you from having to pay capital gains tax.
The person you give the property to may not have to pay SDLT…
If the property is received as a gift there’s no SDLT to pay, so long as there’s no outstanding mortgage on it.
steve@bicknells.net
Yes, its really require to know about taxes of real estate market or your first home property. Well, I think professional advice can help and save your hard earned money on genuine way.