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Joshua
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 26069
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I have a property worth £1,000,000 in London with no mortgage

Resolved Question:

I have a property worth £1,000,000 in London with no mortgage which I wish to transfer to my daughter who currently lives in it with her husband and two kids. I am a Czech passport holder and live in Prague where I have been for the past 15 years and have no interest in this house. I am currently retired and believe I should gift this house to my daughter to avoid IHT. Can you confirm if the above is correct and how I can go about this and what fees and taxes need to be paid.
Submitted: 3 years ago.
Category: Property Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I confirm you are content to give your daughter an outright gift of the property and not retain any benefit in the property yourself at all please?

Customer:

that is correct

Joshua :

thank you. Providing the gift is absolute and you do not retain any personal interest in the property for example by receiving any rental income in the future or living in the property, then it is quite possible to gift the property to your daughter and, providing you survive seven years following the date of the gift, the property will then fall outside of your estate for the purposes of inheritance tax within the UK

Joshua :

an alternative course would be to sell the property because if you are living permanently in Prague, you are not subject to UK inheritance tax except in respect of any property you own here. if you were to sell the property and move the money offshore for example, this would be another way of avoiding inheritance tax but of course that would leave your daughter homeless presumably

Joshua :

in order to gift the property to your daughter, you can consider instructing a solicitor in the UK to prepare a deed of gift in order to transfer the title into your daughter's name. The fees for doing so would likely be in the order of between three and £400 plus VAT plus a land registry fee which I will just check for you

Customer:

thats very helpful are you able to act for me to prepare the deed of gift and sort out the land registry

Joshua :

The land Registry fee to register the transfer of title would be £125

Joshua :

unfortunately the rules of this site preclude me from accepting private instructions however almost any firm will be able to undertake this work for you. your daughter may consider contacting one or two local firms in order to obtain a fee for doing so.

Customer:

is there also any CGT to pay on this gift bearing in mind the property has never been rented and has always been for personal use

Joshua :

providing you have been domiciled abroad for your period of ownership of the property, at the present time there is no capital gains tax payable by foreign domiciled property owners that this is due to change next year therefore present, there should be against tax due

Joshua :

is there anything above I can clarify for you?

Customer:

no this is very helpful thx

Joshua :

A pleasure.

Joshua :

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with though please reply back to me though.

Customer:

ok will rate you now thanks again

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