Gifting Rental Property

Posted by Anonymous PM | on Fri, 12/03/2010 - 21:39 561 2 comments | report

My client has a portfolio of rental properties and wishes to gift one of these to his grandchildren. I'm not too experienced in this area and wasnt sure if this would be a chargeable event subject to Capital Gains Tax or if it would simply be a PET? Also, are the any implications for SDLT etc?

Any advice would be appreciated. I have a friend who is a Chartered Tax advisor who I will speak to regarding this next week but I thought it would also be good to go armed with some knowledge at least.

Thanks in advance.

Comments

Gift

TaxationPete | Fri, 12/03/2010 - 22:05 | Permalink

The Gift will be treated as a disposal so CGT will apply based on the acquisition cost and Open market value at disposal. It will also be a PEt and the vlaye remain in the estate for 7 whole years should an IHT calcuation be required. Taper Relief will apply at 20% per year at the end on year three. Regards Peter

Taper relief

Anonymous | Sat, 13/03/2010 - 16:52 | Permalink

only applies if the gift turns out to be chargeable and cumulative gifts before death exceed nil rate band. See IHTM14611.

No stamp duty if it is genuinely a gift ie no consideration of any kind.