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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My self and my wife own 2 houses we like in one (in scotland)

Customer Question

My self and my wife own 2 houses we like in one (in scotland) and my daughter live in the other. I would like to transfer ownership of the house my daughter lives in to her. What is the best way of doing this to minimise CGT.
Can I transfer say 50% of the house to her one tax year, and then the next year say a further 10% and so on until all of the house is in her name. Each time I tranfer a % do I need to make sure that level of CGT to me and my is below the £11000 limit. Is this a legal way of doing it.
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. I don't see a problem with transferring the property to your daughter over a number of years ir order to utilise the annual CGT exemption. I've yet to read of a case where HMRC have challenged such a move. Many people use their CGT exemptions every tax year to realise gains to that level by only disposing of a small part of their share portfolio and this is really no different. Each percentage gift would have to be based on the market value of the whole property at the time it is made. I hope this helps but let me know if you have any further questions.
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Customer: replied 1 year ago.
HiI would like to confirm your advice on the following with regards ***** ***** gains tax and a further questionMyself and my wife jointly own 2 properties (outright no mortgage) one in England and the other in Scotland we live in the one in Scotland and my daughter lives in the one in England. I would like to transfer the ownership of the property in England to my daughter. The property is valued at £250,000 and we bought it for £125,000 18yrs ago. To try and pay as least capital gain tax as possible can I transfer say 54% of the house in one tax year declaring £11000 capital gains and on the next year say (property still valued at £250,000) 59% of the property to her and again declaring £11000 capital gains. Keep doing this until the property is owned outright by her. I know that the house is going to go up in value every year so I would have to be very careful in the way it is done.
Another question If I bought shares say 15yrs ago at say £10,000 and the company went into liquidation 5 yrs later can I use them to of set capital gain tax now or is it to late?
Expert:  TonyTax replied 1 year ago.
I don't follow your percentages, 54% and 59%. You would need to use the revised value each year if it changes if you are going to transfer the house piecemeal. You only have four years from the end of the year in which the loss was deemed to have occurred to register that loss with HMRC. If the company has been dissolved, the date of dissolution is the date of disposal for CGT purposes.