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Sam
Sam, Accountant
Category: Tax
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I have owned a second home years and so have a capital

Resolved Question:

I have owned a second home for 18 years and so have a capital gain exposure of £200,000.
Could I sell 10% of the property to my children each year for the next 10 years and thus only have a £20,000 gain each year which would then be covered by my wife and my annual capital gains allowances?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.
Yes you can indeed and I have added a the link here from the HMRC manuals that covers in full the position regarding part disposal of assets.
http://www.hmrc.gov.uk/manuals/cgmanual/CG12730+.htm
But you should also ensure that the percentage of the asset is recorded - as the property will increase in value and therefore you need to ensure a valuation is taken each time a part disposal is made, and the value of the percentage sold is also documented.
Also be mindful of Inheritance tax on this, if money does not in fact exchange hands, and you are in fact gifting the property a bit at a time.
If this is the case, then please advise further on the Inheritance tax position
Thanks
Sam
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