How much is cgt? With the expected fall in property prices being suggested might be worth holding until no cgt due.Son has old house value in the region of 60K in which his sister lives rent free. What is the most tax efficient way to transfer the property into her name. I understand she would have to pay gift tax on anything in excess of 32,500 plus the 3000 annual exemption. She would not qualify for a mortgage as she has just started work and has no savings history. If parents buy property from son and then transfer to his sister would that be a more efficient manner. Is there any other taxes involved apart from CGT which he would have to pay on increase in value of property since he purchased it.
15k seems a lot on a value of 60k
The original post states 60k value, if it is the gain how likely is the value to decrease by the 60k to eliminate the CGT liability. 60k drop on a property of 500k would be plausible, 60k drop on a property of 200k a bit less likely (although not impossible).I think that’s the gain, not the tax.
Really depends on what the aim is.
Purchaser would have to pay stamp duty.
Assume 2 X legal fees to transfer.
Parents could provide loan to daughter. She purchases house from son. Assuming both parents are living, they could 'gift' daughter 6k per year, by writing down the loan balance. Or, they could get repayments if the intention isn't to gift.
Or parents gift the full purchase price to daughter, and it uses part of her lifetime Group A inheritance threshold. She buys house from brother.
You might confirm, is 15k the taxable gain, rather than the tax amount?CGT would be on approx 15k
Son has old house value in the region of 60K in which his sister lives rent free. What is the most tax efficient way to transfer the property into her name. I understand she would have to pay gift tax on anything in excess of 32,500 plus the 3000 annual exemption. She would not qualify for a mortgage as she has just started work and has no savings history. If parents buy property from son and then transfer to his sister would that be a more efficient manner. Is there any other taxes involved apart from CGT which he would have to pay on increase in value of property since he purchased it.
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