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Hi, if the 3 children do transfer the property back, for Capital Gains tax (CGT) purposes, they are deemed to be "selling it at its current market value". Therefore, as they acquired the property for £380K, a profit of £50,000 has been made. Divide that by 3, leaves each of them with a gain of just under £17,000. Each of them has an annual allowance for CGT of £11,100 and if they have not used last financial year's annual allowance also of £11,100, there would be no CGT for them to pay (as they have a total allowance of £22,200). I hope this assists and answers our question. Kind Regards Al
Hi, provided they haven't used this year's and last year's CGT annual allowances, no tax is payable. The Transfer back to parents would have to b done by way of the Land Registry Transfer document, called a TR1. You are best to ask a local Solicitor to prepare it, all parties sign it, and it then gets lodged at the Land Registry, who will change the Deeds back into parents names. I am a Conveyancing Solicitor, based in Staffordshire and have been practising for 21 years. Hope this helps. Kind Regards Al