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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10459
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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If I gave a property to my daughter now instead of leaving

Resolved Question:

If I gave a property to my daughter now instead of leaving it to her in my will what are the tax implications?
Submitted: 2 years ago.
Category: Law
Expert:  Aston Lawyer replied 2 years ago.

Hello and thanks for using Just Answer.

My name is ***** ***** am happy to assist you with your enquiry.

Could you please let me know the following

1. Would you still reside at the property after making the gift?

2. How much is the property worth and what is the value of your other monies/assets?

3. Are you still married?

I look forward to hearing from you.

Al

Customer: replied 2 years ago.

No I do not reside at the property.

value of property approx £160,000.00

I decline to give the value of my other assets but I am a top rate tax payer.

I am widowed

Expert:  Aston Lawyer replied 2 years ago.

Hi Brenda,

Thanks for your reply.

On the basis that this a second home, you would potentially have Capital Gains Tax to pay. This would be based on any increase in value of the property from the date you acquired it and the date you gift it (you would be demed to gift it at the current market value).

For Inheritance tax (IHT) purposes, you would be making a lifetime gift, meaning that if you survive for 7 years from the date of the gift, the property would not be classed as forming part of your Estate for IHT purposes. If you were to die before 7 years has elapsed, all or a part of the value of the property would still be deemed to be within your Estate depending on when exactly you died.

If your Daughter is not paying any consideration for the property, there would not be any Stamp Duty to pay on the transaction.

I hope this helps and sets out the legal position.

Kind Regards

Al

Aston Lawyer and other Law Specialists are ready to help you
Customer: replied 2 years ago.

"For Aston Lawyer"

So you are saying I should have to pay capital gains tax on the ddifference between purchase price & the present value of the property, when I give it to my daughter.

But if I can survive for 7years my daughter will not have to pay any inheritance tax on the property.Please confirm.

Expert:  Aston Lawyer replied 2 years ago.

Hi Brenda,

You are indeed correct on both points.

However, as rgeards the IHT, I don't know what the value of your Estate is, but if it is over £325,000 (or if you are still married you have a joint tax free Estate of £650,000) you are liable for IHT. The whole present value or part of the value of the property would be included within your Estate if you were to die within 7 years.

I hope this assists.

Kind Regards

Al