How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Clare Your Own Question
Clare, Solicitor
Category: Property Law
Satisfied Customers: 35056
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
Type Your Property Law Question Here...
Clare is online now

I have bought a house from my father last month; transaction

This answer was rated:

I have bought a house from my father last month; transaction was part gift and part sale with consideration (with money). I didn’t receive a gift deed nor did I or my solicitor asked for one. The only documents we have to prove that the sale was part gift
and part sale with consideration, is a letter from seller’s solicitor to my solicitor confirming that the sale is not undervalue it’s part gift and part sale with consideration.<br>
However speaking with a friend about the transaction today, he thinks it is important that I get a gift deed for the gifted part of the property because when it comes to selling the property in future, HMRC will calculate the capital gains tax using only the
part consideration part of the transaction, which as you can imagine will be considerably more tax; unless we show a gift deed.<br>
If above is correct and I should get a gift deed; what is the best way to approach this to get the gift deed from my father given the matter is closed in both solicitors eyes.
Thank you for your question
My name is ***** ***** I shall do my best to help you.
i am afraid that your friend is incorrect.
When the time comes for the property to be sold the fact that part of it was a gift is irrelevant when it comes to the CGT calculation which is why no Certificate is required
I hope that this is of assistance - please ask if you need further details
Customer: replied 2 years ago.
Thank you.
So do you think I need gift deed at all/ or does it has any use? Not just in relation to CGT calculation?
In other words would you say it’s a good idea to get a gift deed for this transaction?
Thank you for your help.
No there is no need for such a Deed - the letter would suffice if there was ever a question
Clare and other Property Law Specialists are ready to help you