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Hi sorry meant to daughter and her husband, bought property at 80k butmarket value was prob 100k the same as when i transferred, i am still on the deeds yet, as have not come off yet, was waiting until they have paid me in full, (hoping they could get mortgage) but daughter gone uni, was only meant to be short term thing, will it matter if was in 13/14 tax year, if i put it on 14/15?return, thanks you are being really helpful,
Jill, thank you for your reply.For CGT purposes, you would have to work out the gain based on market value of £100k as the sale/transfer is to a connected person.The gain would be £20k less your gains allowance of £10,900 making it £9,100.This would attract CGT at 18%, 28% or a combination of two depending on your taxable income in the year of transfer.
Remember to take away from the gain any costs associated with buying and selling the property.
You should declare it in Tax year 13/14 if the transfer took place during the tax year (6 Apr 2013 - 5 Apr 2014). You can make amendments to your tax return for 2013-14 up to 31 Jan 2016 without incurring any penalty.I hope this is helpful and answers your question.
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