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CGT on Gifted Property

I need some advice on the base cost for a gifted property.

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Hi Guys

Hope that you are all well.

I need some help/guidance in respect of a property that I own.

The property was gifted to me about 15 years ago by my parents.  The property was their PPR but they gifted it to me shortly after they moved into another property.

I am now looking to gift the property myself to a family member (not a spouse).  I have never lived in it myself and it has been rented out. 

I know that i will have to calculate CGT on any gift made as a result as it will be classed as a disposal for CGT.

i assume the proceeds will be market value of the property (i will arrange a valuation of the property).

the bit i was stuck on was the base cost.  am i able to take the value of the property when gifted to me as the base cost or will it be Nil?

thank you in advance for the help.

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By Paul D Utherone
11th Jun 2020 18:12

Kalzema10 wrote:

Hi Guys

Hope that you are all well.

I need some help/guidance in respect of a property that I own.

The property was gifted to me about 15 years ago by my parents.  The property was their PPR but they gifted it to me shortly after they moved into another property.

I am now looking to gift the property myself to a family member (not a spouse).  I have never lived in it myself and it has been rented out. 

I know that i will have to calculate CGT on any gift made as a result as it will be classed as a disposal for CGT.

i assume the proceeds will be market value of the property (i will arrange a valuation of the property).

the bit i was stuck on was the base cost.  am i able to take the value of the property when gifted to me as the base cost or will it be Nil?

thank you in advance for the help.


In the same way as your proceeds to a connected party will be open market value, the base cost of the gift from your parents would have been OMV at the time of their gift, albeit that there should have been no chargeable gain for them as the property was their PPR
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Replying to Paul D Utherone:
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By Kalzema10
11th Jun 2020 18:22

Paul D Utherone wrote:

Kalzema10 wrote:

Hi Guys

Hope that you are all well.

I need some help/guidance in respect of a property that I own.

The property was gifted to me about 15 years ago by my parents.  The property was their PPR but they gifted it to me shortly after they moved into another property.

I am now looking to gift the property myself to a family member (not a spouse).  I have never lived in it myself and it has been rented out. 

I know that i will have to calculate CGT on any gift made as a result as it will be classed as a disposal for CGT.

i assume the proceeds will be market value of the property (i will arrange a valuation of the property).

the bit i was stuck on was the base cost.  am i able to take the value of the property when gifted to me as the base cost or will it be Nil?

thank you in advance for the help.

In the same way as your proceeds to a connected party will be open market value, the base cost of the gift from your parents would have been OMV at the time of their gift, albeit that there should have been no chargeable gain for them as the property was their PPR

Thank you for the quick reply. Much appreciated. I did think that but just wanted to double check given that they would not have paid CGT on the gift with it being a PPR.

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By qhas
11th Jun 2020 19:30

Will there be Stamp Duty payable?

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Replying to qhas:
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By Kalzema10
11th Jun 2020 19:32

qhas wrote:

Will there be Stamp Duty payable?

From my understanding, as the property is mortgage-free, there will be no stamp duty to pay. If there was a mortgage then I think there would be. Not sure if that is right though!

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