if i give my brother my house do i have to pay any capital gains tax etc?

Question

hi just a hyopothetical question but if i pass the deeds of my home to my brother - are there any fees payable?
if he bought it off me is it better that way?
thank you

Answer 1

No he would have to pay it - if it's a gift

probably better if he buys it from you for a small price.

My advice - go see a solicitor. Ist consultation in UK is always free.

Answer 2

OK, look at the capital gains position first.

A house is a chargeable asset so is subject to the CGT rules.

A gift is a chargeable disposal for CGT pruposes.

As your brother is a "connected person" then the transfer is deemed to have taken place at market value for tax purposes.

So you will have a gain. If this house has been your principle private residence throughout your period of ownership then you can claim relief which will reduce the chargeable gain to zero.

Your brother would have an acquisition cost of the market value for when he comes to sell the property.

Now fees, etc. You might wish to use a solicitor to draw up the transfer documents which will obviously cost. Your brother's title to the property will also need to be registered with the Land Registry and this will incur a fee.

Stamp Duty will also be a consideration but may not apply if the property is gifted. If a mortgage is transferred, though, this can give rise to a charge.

One other thing to consider is inheritance tax. The gifted property will still be treated as part of your estate for seven years after the gift is made, or indefinitely if you continue to live there. In this circumstance you may also have a liability to pre-owned assets tax.

Answer 3

If the house you wish to give to your brother is your only home you can transfer it to him by a deed of "love and affection".In the UK the sale of ones home is not taxable.Although if you sell to him for less than the market value depending on value could have problems regarding stamp duty avoidance and with mortgage lenders.But if it is your only property and you wish to give it to him there is nothing to stop you apart from legal fees,assuming there are no loans or debts secured against it.If your brother does not live there and is not his only property it is him that would be hit by capital gains tax especially if he acquired it for nothing.
You will have legal fee to pay to effect the transfer property no matter what you decide.

Answer 4

If its your main residence then it is exempt from capital gains tax but there is an effective purchase by your brother and there will be a stamp duty liability.

Answer 5

Have a look at the link below, someone in a similar situation

PS oops that was an american site, although I believe the same rules apply... try the second one)

Answer 6

you would have to pay gift tax on anything over 12000 per year per recipient