How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15747
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

I wish to gift our flat to our Daughters - what are the tax

Resolved Question:

I wish to gift our flat to our Daughters - what are the tax implications
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
When you gift property you must see if you have any capital gains tax to pay.
The amount received for your property is usually the sale price but when you gift it you use the market value as the sale price.
The market value is the price it might reasonably be expected to have fetched on a sale in the open market.
Next is how much it cost. The length of time you owned it and how you acquired is important. If you owned the property at 31 March 1982 - you use its market value on that day. You inherited it after 31 March 1982 - you use its market value on the date of death of the person who left it to you. If those do not apply then what you paid is the cost.
Now you can see if you have a gain by using the calculation:
Cost - Sell price(less fees to sell).
If this was your home then you can use the Private Residence relief.
You would not owe tax.
TaxRobin and other Tax Specialists are ready to help you