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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 16712
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I want to gift my flat to my son. Apart from capital gains

Customer Question

I want to gift my flat to my son. Apart from capital gains tax and assuming I live more than 7 more years. What are the tax implications apart from stamp duty?
Assistant: What are the assets or property for this capital gain?
Customer: It's a flat worth £140k bought in 1998 for £39.5k
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: The transfer will be completed before the rules change in Aprio 2020
Submitted: 7 months ago.
Category: Tax
Expert:  TonyTax replied 7 months ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Expert:  TonyTax replied 7 months ago.

You already appear to have taken account of CGT and Inheritance Tax.

Stamp Duty would only be payable if money was changing hands or there was a mortgage on the property.

For CGT purposes, your son's cost will be the open market value of the flat when it is gifted to him.

You will need to report the disposal in your tax return.

If there is a change of government after 12 December, the rules around CGT could change with almost immediate effect.

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

Customer: replied 7 months ago.
Ok, so CGT, Inheritance tax and potentially stamp duty. But other taxes?
Customer: replied 7 months ago.
I meant no other taxes at present
Expert:  TonyTax replied 7 months ago.

No, no other taxes unless you count council tax. Clearly, if the property is let there will be an income tax liability on the surplus of rental income over deductible expenses.

Expert:  TonyTax replied 7 months ago.

Hi again.

I'm just following up to find out if my answer helped or if you have any further questions. If not, would you mind rating my answer so that I get credited for my work.