gifting family held buy to let property

CGT on each gift

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Parents aged 55 own residential £300,000 property jointly 50/50 not in comman parents both 40% tax payers

Mortgage £200,000

Two sons in 20's to be gifted ownership of £75,000 each all 4 will own 25% after transfer

CGT Issues as base cost is £150,000 value is £300000 no other CGT issues or  history and  ignore mortgage issues, SDLT, cgt on death , IHT and change to rent tax liabilities.

Firstly I assume no gift relief or holder over relief available for persoanal buy to let property gifting is this correct?

each parent has a personal CGT gain of £37,500 minus £11,100 PA = £26,400 X 28%

Is my understanding correct?

Parents will need to do this with potentailly 6 other properties in the future any gems of wisdom to mitagte / save CGT?

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paddle steamer
By DJKL
26th Aug 2016 10:32

At least consider, if incorporation is a possible approach, albeit debt extant on properties may cause issues and even six properties may not be a business in their particular circumstances, whether Ramsey will assist.

Elizabeth Moyne Ramsay v HMRC [2013] UKUT 266

http://www.rossmartin.co.uk/sme-tax-news/1091-letting-qualifies-as-business

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Replying to DJKL:
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By [email protected]
26th Aug 2016 10:47

moving from personal to a company may cause, higher stamp duty implications, and re first question CGT would be greater liability.

let alone more expensive mortgage and associated legal costs.

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By pacta
26th Aug 2016 10:45

Roy of MaxLoan, are you suitably qualified to advise on this? Have you considered if a partnership exists, incorporation and passing shares, potential PPR issues if let properties were previously occupied, SDLT on transfer to the sonny boys (you say to ignore this, I don't know why you do)? etc.

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