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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I was gifted a business property value at £145000. this is

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I was gifted a business property value at £145000. this is now been transfered back to the business owner - no funds have changed hands. Do i have a tax liability
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise if there has been any change in value between the two days ( when gifted to you and transfer back?

It is unusual to transfer back anything that is gifted? Was it really gifted to you?

Many thanks
Customer: replied 3 years ago.

The value is the same. The original owner gifted it to me, as he wanted assets to a minimum during his divorce.

Expert:  taxadvisor.uk replied 3 years ago.
Thank you for your reply.

If there is no change in the valuation over the period, then there is no tax liability. As there is now change of ownership you should declare the transfer on Capital gains summary pages of your tax return albeit there is no gain.

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 years ago.

If the recipient dies, will inheritance tax be payable on the original gift

Expert:  taxadvisor.uk replied 3 years ago.
Thank you for your reply.

If the recipient dies and his/her estate is worth more than the £325k threshold for IHT including gifts given by him/her within seven year before death, then there would be IHT payable but it would come out of the estate.

I hope this is helpful.
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