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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 31300
Experience:  Over 5 years in practice
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Transferring a property to a sibling without incurring tax

Customer Question

I am hoping to transfer a property that I own (and which my sister lives in) to my sister  - as I don't want the IHT liability in my estate. If I do this transfer over a period of a 4 or 5 years (at say 25% ownership transfer to her per year) could I avoid paying CGT on the property? I've been advised by a financial adviser that this is possible through a 'declaration of trust' (or series of declarations of trust). I live in England, but she and the property are both in Scotland.

a. how is it possible to make this transfer legally and without incurring CGT (accepting my allowance is £11k per year)

b. how do I go about doing this - is it a document I can have done by a legal expert once or will I have to pay for a declaration of trust to be drawn up each year?

For info: the property was bought at £75k, now worth £150k but has had £28k worth of improvements spent on it

Submitted: 3 years ago.
Category: Law