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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 10913
Experience:  30 years as a practising solicitor.
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I want to gift my principal residence to my son there is a

Customer Question

i want to gift my principal residence to my son
there is a large capital gain on property
will i pass that liability to my son even if it will be his principal residence
Submitted: 1 year ago.
Category: Law
Expert:  JGM replied 1 year ago.
Thank you for your question.
No there is no taxable capital gain. You are disposing of your principal residence to your son so your gain is entirely covered by private residence relief. Your son is going to move into the house as his own home so there will be no ongoing taxable gain for as long as that remains the case. And in any event there is no suggestion of you passing on a tax liability as there is none to start with.
A gift of a principal provate residence never attracts Capital Gains Tax.
I hope that helps.
Please leave a positive response so that I am credited for my time.
JGM, Solicitor
Category: Law
Satisfied Customers: 10913
Experience: 30 years as a practising solicitor.
JGM and other Law Specialists are ready to help you
Customer: replied 1 year ago.
also my son has been living rent free for 3 years in a buy to let i have owmed for 8 years ..if i make a gift can there be an implied trust that i was always going to gift him the property and he benefits from private residence relief
Expert:  JGM replied 1 year ago.
No, if you gift that property, you will have a CGT liability, not your son, although he will potentially have a CGT liability from th date of acquisition to date of any future disposal. At the moment it is you who has a liability to pay tax on any gain. This is based on the acquisition price deducted from the value of the property on disposal.
Customer: replied 1 year ago.
will there not be any allowances as he has lived at the address rent free for 3 years
Expert:  JGM replied 1 year ago.
The tax liability is yours as the owner. It has nothing to do with your son.
Customer: replied 1 year ago.
I have been told as I understand it since there is no money exchanged I can gift it without paying cgy
Expert:  JGM replied 1 year ago.
No that's not correct. Only transfers to spouses are exempt. You will pay tax on the gain in value even if no money changes hands.
Customer: replied 1 year ago.
if i gift old buy to let without money exchanging will he have to pay stamp duty
Expert:  JGM replied 1 year ago.
If there is no price, the transfer is exempt from stamp duty.

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