Are there any tax implication on returning a gift

I gifted half my holiday home to my son. He now wishes to gift it back to me.

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Are there any tax implications to me or my son if my son gifts 50% of our holiday home back to me.  I gifted him this 50% over 5 years ago. The value of the property has hardly changed and is relatively low (total £95k).  He no longer wishes to have his name on the holiday home especially as there are stamp duty implications if he buys himself a house to live in.

Replies (8)

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By Accountant A
28th Nov 2019 18:23

In answer to your question, yes, you do need to take some professional advice.

You could use the same accountant that you used when you made the original gift.

Did you do the original 50% transfer by yourself or did you use a solicitor?

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By Oma
28th Nov 2019 18:33

I used a solicitor to do the Land Registry transfer so that the holiday home is in our joint names. I declared the gift on my tax return at the time.

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David Winch
By David Winch
28th Nov 2019 18:48

Do make sure that your son is not charged with a criminal offence from which a benefit is obtained (fraud, theft, tax evasion, drug dealing, etc) in the six years following the date of the transfer back to you. (If he is, the value of his 50% share in the property could be taken into account in Crown Court proceedings.)

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By JDBENJAMIN
28th Nov 2019 19:38

Short answer; yes. Long answer; hire professional advice.

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By unearned luck
30th Nov 2019 19:11

Are you self employed? If so think about VAT.

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Replying to unearned luck:
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By Oma
03rd Dec 2019 12:52

I am retired.so no not self employed. We dont rent the holiday home it is only used by me, my extended family and close friends so no income recieved from it.

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By The Dullard
02nd Dec 2019 10:48

Are you going to give him half back after he's bought his own house and saved the 3% SDLT?

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Replying to The Dullard:
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By Oma
03rd Dec 2019 12:54

No. I think we have learnt to try to keep life simple so once the transfer is done we will leave it in my sole name. I know there are inheritance tax implications by doing this but am happy with that.

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