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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I intend to gift (put into trust) a property I own to my grandchildren.

Resolved Question:

I intend to gift (put into trust) a property I own to my grandchildren. This will happen in January 2016 and there will be a CGT liability of about £50k. Do I need to pay any of this on account (by 31 January or 31 July 2016) or can I wait until I complete my 2015/16 tax return in January 2017?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. You don't need to make payments on account of a Capital Gains Tax liability. If the gift into the trust occurs in January 2016, any CGT due will be payable on 31 January 2017. If you look at HS295 here, you will see that you may be able to holdover the gain until a subsequent disposal of the property. I hope this helps but let me know if you have any further questions.
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Customer: replied 1 year ago.
Very helpful thanks. Answers the immediate question and now gives me a year to look more closely at how the holdover might work. Will I need specialist advice on that when the time comes?
Expert:  TonyTax replied 1 year ago.
It would be a good idea to discuss your plans in more detail with an accountant or tax adviser or solicitor with good tax knowledge around Inheritance Tax, trusts and CGT.
Customer: replied 1 year ago.
Thanks again and a Happy New Year

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