bassguitar 10 #1 Posted December 7, 2020 My niece had a property transferred to her ownership some years ago at its market value. The document declared that no money was changing hands. Since then she has managed to pay for it but this hasn't been declared to the land registry office. Should she let them know this or is it not important? When she sells the property, will capital gains tax be due on the profit from the value stated on the transfer document? Share this post Link to post Share on other sites Share this content via...
CLECKHECK 10 #2 Posted December 7, 2020 Some years ago I transferred ownership of a property to a needy member of my family who simply paid me enough to cover my costs in so doing. I had to pay capital gains tax on the value of the property at the time of the sale and that value was determined by the district valuer (I think that was his title) who was appointed by the Inland Revenue. Share this post Link to post Share on other sites Share this content via...
bassguitar 10 #3 Posted December 7, 2020 Hi Cleckheck There was no capital gains involved apparently at time of transfer as the property has been purchased shortly before the transfer and had only a small gain which was reflected in th transfer value. the question is on the gain when the rrecipient sells the property. Does th gain go from the value at time of transfer, or from Zero if they paid nothing towards it? Do you know? Share this post Link to post Share on other sites Share this content via...
CLECKHECK 10 #4 Posted December 7, 2020 Sorry, I don't know. On reflection our property deals were different. I had been the owner for some time (not myself residing there) and when I transferred the ownership to my relative the Inland Revenue valued it at the time of transfer (ignoring the fact that I was in fact making a LOSS) and deemed that I had made a GAIN because the value at the time of transfer was greater than the value at the time of my initial purchase. Share this post Link to post Share on other sites Share this content via...
Jeffrey Shaw 90 #5 Posted December 8, 2020 (edited) As I cannot answer the question, I can suggest asking HMRC's Forum: https://community.hmrc.gov.uk/forums/customerforums/ifp Edited December 8, 2020 by Jeffrey Shaw Share this post Link to post Share on other sites Share this content via...
bassguitar 10 #6 Posted December 12, 2020 Thanks Jeffrey i will try that Share this post Link to post Share on other sites Share this content via...
spider1 11 #7 Posted December 15, 2020 (edited) Value hen she bought it say £50/000 to price when she sells is subjert to C G TAX unless this is your main residence / less expences plus an allowance this needs a soilcitor . Dont know if you can sell it to one of your children cheap and them live in it as a main residence for a number of years ask a solicitor If its your main residence should be any c g t but should see a solcitor get sotted Edited December 15, 2020 by spider1 Share this post Link to post Share on other sites Share this content via...
topflat29 10 #8 Posted December 21, 2020 On 07/12/2020 at 18:50, bassguitar said: My niece had a property transferred to her ownership some years ago at its market value. The document declared that no money was changing hands. Since then she has managed to pay for it but this hasn't been declared to the land registry office. Should she let them know this or is it not important? When she sells the property, will capital gains tax be due on the profit from the value stated on the transfer document? If the property is registered under her own name at Land Registry , it does not matter now about reporting her payment to Land Registry. When she sells the property, the capital gain will be calculated from the sale proceeds minus the market value when it was transferred to her. Share this post Link to post Share on other sites Share this content via...
Jeffrey Shaw 90 #9 Posted December 21, 2020 If she has been the owner-occupier throughout, there's no CGT payable at all. Share this post Link to post Share on other sites Share this content via...