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: 15713
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

As a landlord I have agreed a property and would

Customer Question

As a landlord I have agreed a property for sale and would like to know can I put my son on the deeds to minimise my capital gains.Property is due to be completed on 30th June 2015.Tony XXXXXX

Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi.

Is this a property that has only been let and that has never been your main home?

Customer: replied 1 year ago.
This property has been let from 2000 and is registered in both my name and my wife's.We are both pensioners but we have 4 children,one is 25 and is unemployed but does not receive benefits..Can we save capital gains if we put our children on the deeds before completion.
Expert:  TonyTax replied 1 year ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 1 year ago.
Hi again.

If you simply want to put your son on the deeds but have him give you his share of the disposal proceeds after the sale that won't work. HMRC will say that there was never an intention to gift your son part of the property and for him to benefit from it.

If you do gift your son a share in the property such that he keeps his share of the sale proceeds, then that will be both a gift for Inheritance Tax purposes and a part disposal for Capital Gains Tax purposes.

IHT

Should you die within seven years of making the gift, its value will form part of your estate for IHT purposes as though you had never given it away. Take a look here for information on IHT and here for information on the tapering of IHT on gifts made in the seven years before the death of the donor.

CGT

A gift of a share of the property to your son will be a disposal for Capital Gains Tax purposes at the open market value for that share, ie you will be treated as if you had actually received the cash for that share. That may or may not leave you with a CGT liability but if you then sell the property shortly after the gift, that sale will give rise to a capital gain and you will be in the same position as if you had the sold the property without making a gift of a share of it to your son.

Of course, any CGT liability will depend on the facts and figures of the case. If the property was ever your main home, you will be entitled to some main residence relief and letting relief which will reduce the taxable gain. Take a look at HS283 for more information on the main home and CGT.

I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
I have just read that the first consultation is free but It appears I have been charged £36.Is it possible to get this amount refunded?
Expert:  TonyTax replied 1 year ago.
I have no involvement with payments so you will need to get in touch with just answer customer services from here to resolve that query.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    1772
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    268
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions