i re married and went to live with my husband, i still had a mortgage on my property so i rented it out to my daughter,now my mortgage is paid, if i give my property to my daughter will i be liable for capital gains tax. thank you for your help
2007-10-01 03:11:26 · 3 answers · asked by wilde1 2 in Business & Finance ➔ Taxes ➔ United Kingdom
When you make a gift, you are treated for capital gains tax purposes as if you had sold it for its market value. So the answer is potentially, yes.
However, there are exemptions to be claimed. Firstly, the main residence exemption, for the period you lived in it. Secondly, an exemption of up to £40,000 for let properties that were once your main residence. There is also taper relief to claim, and your annual exemption of £9,100. All of this could wipe out the whole gain.
It's worth spending an hour with a tax adviser to crunch the numbers!
2007-10-01 09:18:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No, those will be due if and when your daughter sells it. Be sure she has the records of what you paid for it and any improvements (not repairs) that you made, and any depreciation that you claimed. Since she's getting it as a gift, your basis becomes her basis.
2007-10-01 10:27:24 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Yes. I would consider just adding her name to the deed.
2007-10-01 10:13:53 · answer #3 · answered by TONYA R 2 · 0⤊ 2⤋