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 bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4944
Type Your Tax Question Here...
bigduckontax is online now

I have 3 cottages I let as holiday homes, all in a barn conversion.

This answer was rated:

I have 3 cottages I let as holiday homes, all in a barn conversion. the build / conversion cost in 1999 was £180,000 for the 3.
If I wanted to sell one to my son would I have to pay cgt on the gain? I assume market value to be around £175,000 but would probably sell to my son for around £130,00.
as an alternative can I keep within the 'family business' and defer the gain?
Hello, I am Keith, one of the experts on Juts Answer, and pleased to be able to help you with your question. Unfortunately you will have to pay CGT on the house you sell to your son. The same would be true if you gave it to him. The disposal price for CGT purposes would be the current market value. If you keep the house in the 'family business' there is, of course, no capital gain created. Remember Benjamin Franklin's dictum that in life there are but two certainties, death and taxes. The tax will get you in the end either through CGT if you are still alive at disposal or through Inheritance Tax if you die. I am so sorry to have to rain on your parade.
Customer: replied 2 years ago.
Thanks anyway, we will put one on hold
Customer: replied 2 years ago.
As an aside, the 3 cottages were built under one title at the aforementioned cost of £180k.
The ctg would apply in the situation if one is sold (by splitting title) leaving the 2 remaining as effectively the 'gain' ??
Correct, this will split the gain considerably.
Please be so kind as to rate me before you leave the Just Answer site.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
Thanks, ***** *****
Thank you for your support.