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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11695
Experience:  30 years as a practising solicitor.
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I live in Kenya as a citizen. I have a kenya passport, also

Customer Question

I live in Kenya as a citizen. I have a kenya passport, also an Irish one. Five years ago I bought my four children an apartment in London. Their respective properties are in their names. I also bought a small one bedroom flat for myself, but put it in the names of my four children. I would like them to transfer the title to myself now, in order that I might purchase a house for myself in the countryside in the UK with a view to living there full time. THe cost of the flat was Pds355,000. What would be their capital gains tax liability if this were to happen, on the basis they would transfer title for nil consideration.
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
In which country do your children stay?
What is the current value of the flat?
Customer: replied 2 years ago.

My children live in UK. The current value of the flat is £500,000.

Expert:  JGM replied 2 years ago.
They will pay CGT on a chargeable gain of £145,000 less what personal allowances they have for the tax year in question (less any monies spent on the property).
Assuming each has an equal share in the property and there are no allowance deductions the tax would be based on
£145,000 divided by 4 is
£36,250 each
Less personal allowance £11,100
Equals £25,150
Any child paying basic rate tax will pay tax at 18% being £6,525.
Any child who pays higher rate tax will pay tax at 28% being £10,150