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bigduckontax
bigduckontax, Accountant
Category: Tax
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I have 3 cottages I let as holiday homes, all in a barn conversion.

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I have 3 cottages I let as holiday homes, all in a barn conversion. the build / conversion cost in 1999 was £180,000 for the 3.
If I wanted to sell one to my son would I have to pay cgt on the gain? I assume market value to be around £175,000 but would probably sell to my son for around £130,00.
as an alternative can I keep within the 'family business' and defer the gain?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Juts Answer, and pleased to be able to help you with your question. Unfortunately you will have to pay CGT on the house you sell to your son. The same would be true if you gave it to him. The disposal price for CGT purposes would be the current market value. If you keep the house in the 'family business' there is, of course, no capital gain created. Remember Benjamin Franklin's dictum that in life there are but two certainties, death and taxes. The tax will get you in the end either through CGT if you are still alive at disposal or through Inheritance Tax if you die. I am so sorry to have to rain on your parade.
Customer: replied 1 year ago.
Thanks anyway, we will put one on hold
Cheers
Customer: replied 1 year ago.
Keith
As an aside, the 3 cottages were built under one title at the aforementioned cost of £180k.
The ctg would apply in the situation if one is sold (by splitting title) leaving the 2 remaining as effectively the 'gain' ??
Expert:  bigduckontax replied 1 year ago.
Correct, this will split the gain considerably.
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Customer: replied 1 year ago.
Thanks, ***** *****
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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