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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My principal residence is in France. I own a second property

Customer Question

My principal residence is in France. I own a second property in UK, in which my student son lives for the last five years. The property is worth more now by c60K than it was in April 2015.
If I transfer the title deed to my son now, will this trigger a capital gain event on the April 2015 to now gain?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi. It will trigger a gain as you will be treated as having sold the property to your son at the open market value due to your connection for Capital Gains Tax purposes. Take a look here for a map of connected persons. However, for a non-UK resident, there are three ways of calculating the gain which you can see here. If you gift the property to your son, it will be a potentially exempt transfer for Inheritance Tax purposes. The value of the gift will stay in your estate for seven years after you have made it, though any IHT charge tapers away from the third anniversary of the gift as you will read here. I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 2 years ago.
Hi.I'm just following up to find out if my answer helped or if you have any further questions.