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JGM, Solicitor
Category: Property Law
Satisfied Customers: 12173
Experience:  30 years experience in property law.
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We currently own a property with a buy to let mortgage which

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We currently own a property with a buy to let mortgage which our daughter lives in. We are considering paying off the mortgage and selling the flat to her for say a peppercorn amount- say 1GBP.- with a separate legal agreement between us saying that she owes us the money with which we paid off the mortgage. Once she owns the title deeds, she would re-finace the property and pay us back. Therefore, she would own the property and any mortgage/refinance debts associated with it. Can we legally do this? And would we have to pay tax on any of this, given that we are not making a profit on the transaction? thanks, Claire
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Customer: replied 3 years ago.

Yes, that's fine; can you tell me roughly how much time? thanks.

Customer: replied 3 years ago.
Relist: Incomplete answer.
She said she was opening the question to other lawyers, and I have no been waiting for over 24 hours. thanks
You can legally give the property to your daughter for £1 but you will pay capital gains tax on the difference between the price you paid for it and the market value at the time of disposal less your personal allowances and expenditure.
The only way to avoid this is to apply to the Revenue for Gift Hold Over Relief which would allow the tax to be postponed until your daughter sells the property. At that time she would be liable for the capital gains tax.
Happy to discuss further.
JGM, Solicitor
Category: Property Law
Satisfied Customers: 12173
Experience: 30 years experience in property law.
JGM and other Property Law Specialists are ready to help you
Customer: replied 3 years ago.

Can we clarify: what would qualify as personal allowances and expenditure? and..with Gift Hold Over Relief, I am presuming she would pay the CGT that would have been due on the transfer of the property from us to her, and not on any additional profit that might result from the sale of the flat some time in the future ( it would be her primary residence)? And, as we bought the flat for 167,000 in 2005,( with a mortgage of 109,000, and it is now worth approx 300,000, (and we have spent about 20,000 on renovations etc) what would is the approximate CGT we would be liable for? thanks

Personal allowances are currently £11000 each. The hold over relief relates to the "now"'not any future profit, yes.I can't do the calculation without a note of what you've paid in mortgage over the period and what other income you have, whether you are high or low rate taxpayers etc. I don't want to take such personal information from you on an open website but you can if you wish go to a website such as and input your information and it will estimate the tax for you.