Gift to minor child

Gift to minor child

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If a parent gifts absolutely a share of an asset (in this case an investment property) tot to a minor child, I believe that the income from that asset is assessed on the parent. Does this also apply to capital gains i.e. on a future disposal (not in the short term) can the child utilise their own CGT annual exemption or is that also assessed on the parent?

Does it make a difference if, rather than transferring a share of the asset to the child, the parent gifts cash to the child which is used to purchase the child's share of the asset?

Assistance appreciated.

Richard

Richard Condon

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By User deleted
30th Nov 2007 13:52

Everyone's entitiled
I find it surprising that there is still non- aggregation of gains, as opposed to income. There is no trust involved here so, on a disposal, the child can claim the CGT annual exemption against his/her gain. In both situations , especially the latter (cash and purchase) there may well have to be an adult standing in as bare trustee but this does not mean the A.E. is debarred to the child, however young.

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