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CGT implication guidance please.

If I were to gift my PPR of 20+ years to my daughter. And she was to then sell it immediately (without having lived in it) what would define the level of CGT she would have to pay? The house is worth apx £500k. I know our position re IHT and am comfortable with that. But want to know how exposed to CGT she/I would be. She already owns her own home that she lives in, and i plan to live there permanently with her. Any guidance much appreciated. Mel

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09th Nov 2018 00:49

Your gift would be deemed to have been at market value for CGT. Presumably the eventual sale price will be a similar level, meaning little/no CGT.

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to the_drookit_dug
09th Nov 2018 01:08

Thanks for your prompt response, much appreciated. I was concerned that it not being her PPR once it was signed over to her (or ever) would mean she would incur a large CGT bill. Mel

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By Ruddles
09th Nov 2018 09:01

What’s the point of gifting if she’s going to sell it immediately?

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to Ruddles
09th Nov 2018 11:09

I find dealing with agents and buyers previously very stressful and tiring. So would rather let her shoulder the stress and drama as she’s young and sharper and dosent miss a thing. Ruddles are you saying this as it would be better me to sell them give her the he funds? If so how would this improve the situation? As from the previous posters response the initial scenario seeems pretty safe and trouble free? Thoughts appreciated.

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By DJKL
to MelissaMiller
09th Nov 2018 11:26

Ignoring the gift surely reduces some legal work and possibly reduces costs- if stressed re process of selling possibly grant daughter a POA ,which may be a good idea anyway.

Be sure you have professionally checked IHT position re
Reservation of Benefit issues if either passing house or money to daughter and then going to live with her; there may be snares

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to DJKL
09th Nov 2018 18:06

….and there may be a distinction between gifting the house and gifting the sale proceeds, in that regard, so taking advice is no bad plan.

A good firm of solicitors should not be stressful to deal with and should be able to advise on all the above points.

(OP: solicitors get a bad press in this forum, so I may be shouted down, but appoint a good firm and I hope your experience matches mine.)

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09th Nov 2018 18:55

Good advice by all and massively appreciated. Finding a, “good” tax solicitor though seems a task beyond climbing Everest! Any suggestions of tried and tested people much appreciated. Mel

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