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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15708
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am voluntarily liquidating my plc company and will have a

Customer Question

I am voluntarily liquidating my plc company and will have a let property transferred to me by the liquidator paying 10% entrepreneurial tax on the assets of the company upon liquidation. On receipt of the property I want to immediately gift it to my daughter and have no legally or financial interest in the property. Will I have any stamp duty or capital gains tax to pay on the gift of the property to my daughter?
Submitted: 6 months ago.
Category: Tax
Expert:  TonyTax replied 6 months ago.

Hi.

Has the liquidator told you that the value of the property will be part of the capital payment to you which will be subject to CGT at 10% under the entrepreneurs' relief rules?

Customer: replied 6 months ago.
Expert:  TonyTax replied 6 months ago.

Thanks.

As the property will effectively be transferred to you from the company at market value and you will pay CGT, that market value will be your cost for CGT purposes. If you give it away to your daughter immediately, there will be no gain as the acquisition value and the disposal value will be the same. Assuming there is no mortgage and no cash involved in the gift, there will be no stamp duty to pay. Take a look here for more information on stamp duty and property transfer.

I have to say that gains on residential property will not normally be entitled to be taxed under the entrepreneur relief rules.

I hope this helps but let me know if you have any further questions.

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