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 TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

If we buy a second property to rent out, say for 10+ years,

Resolved Question:

If we buy a second property to rent out, say for 10+ years, move in to it at some point after the 10 years (assuming any mortgage has been cleared) and then decide to sell it to our children for £1, would we be liable to any tax or would they?
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

If you sell a property to your children, it will be deemed to have been sold to them at the open market value no matter what they pay as you and they are connected for tax purposes. There may be CGT to pay but as I said in an answer to another of your questions, it depends on the facts and figures.

If you own a house for 20 years and live there for the first ten, then let it for the next ten, you will get exemption from CGT for 11.5 years worth of the gain. Letting relief will reduce the remaining taxable gain. Every individual also gets an exemption for the first £11,000 of gains they make in any one tax year.

I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you

Related Tax Questions