Hi All
I have a new client who had a rental property transferred from her parents to her last summer. She is now gobsmacked when I mention CGT that her parents will need to pay for that transfer. According to my client when the transfer took place (before becoming a client of mine) her solicitor told her that CGT would not apply as the property had been gifted to her 'for natural love and affection'. Am I missing something here? Any guidance/point to relevant HMRC manual greatly appreciated.
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The solicitor was probably thinking of s.165 hold-over relief as it stood between 1980 and 1989 when it applied to gifts of non-business assets.
N.B. Although letting property is a 'business' a business asset for hold-over purposes must be used for the purposes of 'a trade, profession or vocation'.
