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Sam
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/Madam, I am a German citizen (educated in England)

Resolved Question:

Dear Sir/Madam,
I am a German citizen (educated in England) and now resident in Morocco.
I own a property in London (free of any mortgages or encumberances), worth about 600,000 pounds, the ownership of which I wish to gift/transfer to my daughter, a Swiss citizen resident in Greece.
Does such gifting/ownership transfer incur any stamp, capital gains or other taxes in the UK?
I´m most grateful for your advice.
Yours faithfully,
Christian von Stieglitz
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question
There will be no stamp duty as the property is free of any mortgage, however you will have a capital gain consideration - due to the change of ownership and gifting of this property.
Up until 05/04/2015 - as a non UK citizen who also NOT resident in the UK, then this could have been made free of UK capital gains, as long as you had been not resident or at least 5 full tax years from the UK (during which time this gift was made.
However since 06/04/2015 this has all changed - but on the plus side any capital gain liability that would arise in the UK will only be for any increase in value from 06/04/2015 to the date of transfer, so, in essence the sooner your make the transfer the better!
I have added a link here regarding this new capital gain position for non residents.
https://www.gov.uk/capital-gains-tax-for-non-residents-uk-residential-property
Please make sure that you inform HMRC of this transfer and you may need to advise the Non Residency team if you do not have access to a local HMRC office (that has ever dealt with your tax affairs from any UK source)
Let me know if you need this address.
Your only other consideration would be that of Inheritance tax, where you might still have a UK position arising should you not survive more than 7 year from the date of making this gift, as this asset sits in the UK.
That means you cannot continue to make use of it, or this will be treated as a gift with reservation (so not be excluded for Inheritance tax after the 7 year period has lapsed)
Finally - as your daughter will now own this property (as long as you do not continue to make use of it) then she must consider whether she will have any rental income arising on it (which would need declaring toe HMRC) and she also has a UK Inheritance tax position to consider.
Thanks
Sam
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